Taxation of Foreign Companies in Austria
Taxation of Foreign Companies in AustriaUpdated on Saturday 16th September 2017
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The taxation of foreign companies in Austria differs from that of locally incorporated companies. Foreign firms are taxed on the income they derive from the country and are generally subject to the same number of taxes for companies.
One of our lawyers in Austria can give you complete information on the basis for corporate income tax and the municipal and federal taxes levied in the country.
Corporate taxation for foreign companies in Austria
The corporate taxation principles for limited liability companies and joint stock companies are similar for foreign-incorporated businesses and for resident ones, in as far as the corporate income tax rate and the types of taxable income. However, foreign companies in Austria are not taxed on their worldwide income as local entities, rather only on the income they derive from the country, according to their business activity or activities.
Non-resident companies, such as branches in Austria, are subject to corporate tax on their income produced in the country at the standard rate of 25%.
One of our attorneys in Austria can give you further information on the tax treatment of foreign income.
Other taxes for foreign companies in Austria
Austria has a value-added tax for the provision of goods and services. Companies in Austria with an annual turnover below 30,000 EUR can be exempt from VAT. The standard value-added tax is 20% and a reduced 13% applies to selected goods and services.
The real estate tax applies to immovable property located in Austria and foreign investors are subject to this tax if they own property in the country. This tax is levied at a federal level.
Employers in Austria, including foreign companies, are subject to social security contributions for all of their employees in the country. This contribution is levied on the employee’s salary up to approximately 69,000 EUR per year (this rate may vary). One of our lawyers can give you further information on the employment law and the requirements for foreign employers in the country.
Contact the experts at our law firm in Austria for more information about taxation in this country.