Tax Minimization in Austria
Tax Minimization in AustriaUpdated on Tuesday 07th March 2023
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Tax minimization in Austria is the cumulus of lawful practices meant to reduce the overall tax burden for a company or individual. It is not the same as tax evasion and it is simply based on long-term practices that can be included in the broader financial planning strategy.
Our lawyers in Austria detail some of the available tax minimization strategies and talk about the taxation regime in the country.
Methods of reducing the tax burden in Austria
Tax minimization is closely linked to tax planning and choosing the right investment strategies. When implemented effectively, these practices can allow a business to lessen the amount of due taxes throughout the year and not only during the year-end assessment and on the eve of submitting tax reports.
Companies in Austria have access to a number of tax incentives, particularly those companies in the field of research and development. The available tax breaks, depreciation and incentives are worth exploring and one of our attorneys in Austria can give you complete information about these, according to the business field in which your company activates.
Corporate tax minimization strategies can include corporate tax planning, income deferral, capital depreciation, the deduction of bad debts and the deduction of reasonable business expenses, such as travel and equipment expenses. A tax group regime is applicable in Austria and the losses of non-Austria companies which are group members may be used temporarily in Austria. Certain conditions do apply and one of our lawyers in Austria can give you more information about deductions and losses.
We are at your disposal with specialized legal help if you want to apply for a residence permit in Austria. Such a document is valid for up to 3 years and can be issued in a maximum of 3 months. Once you have lived in Austria for 5 years with this type of permit, you can apply for the permanent one. But everything that interests you in this endeavor can be obtained from one of our specialists on immigration issues in Austria.
Taxation in Austria
Austria imposes a 25% corporate income tax on the profits derived by registered companies. Non-resident entities are only taxed on the profits derived from an Austrian source. Other taxes for companies include the municipal tax, the value-added tax, security contributions or customs and excise duties.
Our team of lawyers in Austria can give you more information about the generally accepted methods of reducing the tax burden for companies and individuals.
Contact our law firm in Austria for complete legal counseling on the applicable tax laws and how to benefit from existing tax incentives.