Income taxes
Last reviewed 17 May 2023
Tax rate
progressive staggered tax rates (income of individuals subject to limited tax liability in Austria is increased by EUR 9,567); abolishment of the cold progression as of 01.01.2023
EUR 0 – 13,308.00: 0%
EUR 13,308.00 - 21,617.00: 20%
EUR 21,617.00 - 35,836.00: 30%
EUR 35,836.00 - 69,166.00: 40%
EUR 69,166.00 - 103,072.00: 48%
EUR 103,072.00 - 1,000,000: 50%
EUR 1,000,000 and more: 55% (until 2025)
Special tax rates
Income from capital: 25.0% and 27.5%, respectively
Income from real estate sales: 30%
Tax liability
Unlimited
on worldwide income (except where DTA restricts the right to assess tax):
Individuals with their residence or habitual abode in Austria
Note: A progression clause is not only applied to unlimited taxpayers who are tax residents in Austria, but also from 2022 onwards if Austria is the double-taxation treaty (DBA) source country.
Limited
on certain income in Austria:
- Individuals, who have neither their residence nor their habitual abode in Austria, on certain income
- Individuals with their residence in Austria, if they fulfill the requirements for secondary residence (e.g., maximum 70 days in Austria annually)
Tax assessment period
Calendar year
Income categories
Income from
- Agriculture and forestry
- Self employment
- Trade
- Employment
- Capital gains (including crypto-assets)
- Rents
- Other (private annuity, speculation gains and certain real estate profits)
Accounting
Double-entry accounting
Small businesses and freelance professionals: receipts and payments accounting (cash basis accounting)
Obligation to maintain accounting records under Austrian
Tax Law Provisions (BAO), Austrian Business Code (UGB) or specific legislation
Loss set-offs
Internal set-offs
Horizontal set-off (within individual income categories)
Vertical set-off (between individual income categories)
Exceptions, particularly for investment income, for real estate losses, in the other income category, and with certain loss models in case of limited liability
Loss carryback
not possible
Loss carryforward
Unlimited as to time for business income (categories 1–3), provided loss calculated on the basis of generally accepted accounting practices.
no carryforward / set-off restrictions
Operating expenses
Expenses of the business
Tax allowable expenses
Expenses for acquiring, securing or maintaining the revenue of the business
Lump sum option
Where income from self-employment, trade or business is accounted for on a cash basis, expenses may be calculated as a lump sum percentage; generally 6% partially 12%
Lump sum option for small enterprises (applicable to sales of up to EUR 55,000): Operating expenses will be calculated with the following percentages of the operating revenues:
- 45% in case of trading and production companies (to a maximum amount of EUR 18,900)
- 20% in case of service companies (to a maximum amount of EUR 8,400)
- additional deduction of social insurance contributions Lump-sum profits for agriculture and forestry and specific trades and professions
Motor vehicles
Depreciation over at least 8 years for passenger cars
Deduction of actual costs or official rate per kilometer (EUR 0.50; maximum 30,000 kms per year)
Maximum allowable acquisition costs: EUR 40,000 for passenger cars
Social insurance
deductible
Withholding tax
Where liability to tax is limited, withholding tax is as a rule 20%, in the case of investment income 25% respectively 27.5%, and real estate profits 30%. A DTA can provide for a lower rate of taxation, relief is granted by refund or reduction at source
(Double Taxation Relief Regulation: detailed evidence of entitlement required)
Interest
Gernerally 25 % respectively 27.5 %
Automatic exchange of information with EU member states and certain third countries.
Royalties
20 % or applicable DTA
Dividends
27.5 % or applicable DTA
