Austria legal and accounting and tax considerations in 2024

1. In accordance with Austrian Commercial Code volume 1 from 31/03/1965, each entity must register for corporate tax at the Federal Tax Authority. Corporate tax applies to local and international income at a standard rate of 24%. Returns must be filed electronically by the 30^th of June of the year following the fiscal year;
2. VAT registration is mandatory for entities boasting annual turnover above €30,000. The rate of value added tax is 20% in Austria. Businesses must file their VAT return on a monthly basis and pay VAT every year in June;
3. For an active trading company, these accounting and tax fees are an estimate of Healy Consultants’ fees to efficiently and effectively discharge your annual company accounting, auditing and tax obligations. Following receipt of a set of draft accounting numbers from your company, Healy Consultants will more accurately advise accounting and tax fees. For a dormant company, Healy Consultants’ fees are only €950;
4. Monthly, quarterly and year-end Government tax obligations include i) monthly payroll reporting and ii) monthly or quarterly VAT and corporation tax return filing. If you need our help, Healy Consultants can complete monthly Government reporting for a monthly fee of €1,600. Healy Consultants monthly support will include i) receive in dropbox the monthly invoices from our client ii) label monthly bank statement transactions iii) preparation and submission of VAT returns and iv) monitor monthly profit levels to minimize annual tax v) submission of monthly employee payroll reporting;
5. Austria companies are obliged to pay an annual minimum corporate tax of i) €1,750 for LLCs ii) €3,500 for PLCs. Businesses incorporated since June 2013 however benefit from a reduced corporate tax of i) €500/year for 5 years after incorporation and ii) €1,000/year in the following five years;
6. Dividends and capital gains between parent-subsidiary companies both based in the EU are exempt from corporate tax;
7. A 25% withholding tax is applied on dividend payments to non-resident companies, unless reduced via a tax treaty or the EU parent-subsidiary directive;
8. Royalty payments to non EU companies are subject to withholding tax at 20%, unless reduced via a tax treaty;
9. Interest payments to both Austrian and foreign companies will be 100% withholding tax-exempt, unless the beneficiary is a non-resident sleeping partner;
10. Employers in Austria must pay social security contributions at a rate of 22% of their employees’ gross salaries;
11. Other taxes levied on legal entities in Austria include i) capital transfer tax of 1% ii) real estate transfer tax of 3.5% iii) stamp duty ranging from 0.8% to 2% iv) payroll tax of 2%;
12. Austria has signed an impressive 92 double tax treaties with different international jurisdictions including the UK, the UAE, The USA, Switzerland, Singapore, Sweden among others;
13. Finally, Healy Consultants will assist the Client with i) Documenting and implementing accounting procedures ii) Implementing financial accounting software iii) Preparing financial accounting records and iv) preparing forecasts, budgets and performing sensitivity analysis;
14. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.