Tax system of Austria

Austria is a federal state. Legislative competence is incumbent on the federal government for exclusive federal taxes (including corporation tax, insurance tax) as well as for taxes, the income of which is distributed to the federal government, states and municipalities (including income tax, wage tax, value added tax).
For taxes, the income of which depends entirely on the federal states (e.g. Fire protection tax) or municipalities (e.g. property tax) and are divided among the states and municipalities, the state legislation is responsible. Natural persons are covered by income tax. A final withholding tax (final interest rate tax) of 25 % taxed investment income. Legal persons are subject to corporation tax on their total income.

the Determination of profits basically takes place through a comparison of business assets. Book-keeping companies are supported by a fictitious return on the annual equity injection, which can be deducted from profit outside the balance sheet. Businesspeople who are not required to keep accounts determine their profit using an income surplus calculation.

For companies that are entered in the commercial register, the trade balance sheet forms the basis for comparing assets, giving them more options. The trade tax has been abolished since 1.1.1994. The wealth tax was repealed on 1.1.1994. There are different taxes on property transfers (including property transfer tax, capital transfer tax; bill of exchange tax).
Acquisitions due to death, gifts between the living and special-purpose gifts are covered by inheritance and gift tax at the purchaser (recipient). The tax subject of the property tax to be paid by the owner is the domestic property. In addition to some consumption taxes, environmental taxes (electricity tax, natural gas tax) are levied. Austria has concluded double taxation agreements with around 40 countries, most of which are based on the OECD-MA.

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