Dividend Tax in Austria
Dividend Tax in AustriaUpdated on Tuesday 07th March 2023
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The dividend tax in Austria applies to the distribution of dividends, be it to Austrian residents or to non-residents. This withholding tax on dividends has a standard value and it may be reduced under an applicable double tax treaty.
One of our lawyers in Austria can give you complete information on the taxation of investment income in the country.
The dividend withholding tax in Austria
The withholding tax for dividends in Austria is 27.5 percent and it applies to dividend payments made to a non-resident recipient company. Austria observes the EU parent-subsidiary directive which stipulates that there is no withholding tax on dividends if the dividends are paid to an EU company that observes the principles of the directive. For this to be possible, the parent company must hold at least 10 percent of the company making the dividend payment for more than one year. The anti-abuse provisions also contain other conditions for operation for the company receiving the payment. One of our lawyers in Austria can detail these principles that allow companies to qualify EU parent-subsidiary directive.
When the dividend payment is made by a foreign company or agency, the withholding tax in Austria cannot apply. However, the income will be reported on the income tax return filed with the Austrian tax agencies and will be taxed at the same flat rate of 27.5 or 25 percent.
Austrian residents are subject to income tax on all their sources of income, including dividends. Non-residents are subject to tax on some sources of income, including dividends received from Austrian companies.
Our attorneys in Austria can detail the taxation principles for residents and non-residents in the country.
Our law firm deals with persons who want to apply for citizenship in Austria. This process involves a series of procedures, and the most important ones are related to the preparation of documents. We remind you that you need to prove that you have knowledge of the German language and that you have a stable income, a domicile in Austria, and a clear criminal record. If you meet these conditions, you can apply for the desired citizenship.
Double tax treaties with Austria
Austria has signed more than 80 double tax treaties that allow for relief from double taxation for taxpayers who derive income from both states that concluded such an agreement.
The double tax treaties allow for a reduced withholding tax on dividends.
You can contact the experts at our law firm in Austria for complete details on taxation in the country.