Austria

Repubblica Federale e democrazia_cc781905 -5cf58d_democracy_cc781905 -5c4bde-3194d_democrazia_cc781905-5cbad3-3194d

parliamentarian   (although  the president   is elected directly by the citizens) 136bad5cf58d_paesi europei che hanno dichiarato la  neutralità  permanente, nonché tra i pochi countries in the world to include the concept of eternal neutrality in its constitution . He is a member of the  United Nations  dal  1955_cc781905-5cde- 3194badd_1955 European Union -3194-bb3b-136bad5cf58d_ took place on January 1st  1995 .

VAT

20%

CIT

25%

SSC
39%

CIT = Corporate Income Tax - corresponding to IRPEG

SSC = Social Security Contribution - corresponding to the Social Contribution

Commercial relations with Italy 

Relations between Italy and Austria are excellent.

According to the data of Statistik Austria for 2017, Italy si confirms  the 2nd trading partner of Austria, after Germany, as a supplier country, with a share of market on total Austrian imports equal  at 6.2%. As Buyer country Italy currently_cc781905_5cde-3194-bb3b-136bad5cf58d_Italy currently_cc781905_5cde-third place in Germany total Austrian exports of 6.4% in 2017.

The Italian supplies  are quite diversified and it is  in first place the category of machinery and motor vehicles and their parts, which in 2017_cc781905-5cde-3194-3294-badd5-bb3b of total Austrian purchases. Semi-finished products (23%), other finished products (furniture, clothing, shoes, etc.) follow with 13%, and chemical products e i prodotti agro-food that both  account for 12% of the total Austrian imports from Italy.

Among the Austrian exports to Italy are the machinery and means of transport, which account for 20% of the total export, followed by i chemical products with 14% and food products with a 13% share.

For gli investimenti bilateral between Austria and Italy there has been a significant development between Austria and Italy in recent years Austria, especially in recent years Austria first of all thanks to the acquisition of the Bank Austria bank from the Unicredit group. For many years large companies have been present in Austria such as the Generali insurance group, the ENI group with service stations, and the SNAM Group, an increasingly important interlocutor for the gas market. But also Autogrill in the catering sector, or Geox and a large number of fashion houses in the retail sector, are present on this market with local representatives and branches. The data of the government agency for assistance to foreign investments in Austria ABA show a continuous development of Italian investments in Austria._cc781905-5cde-3194_badd-136cfb

Austrian investments in Italy, on the other hand, do not reach the level of Italian investments in Austria. Important sectors are trade, construction, food and energy.

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Taxation

 

The salient features of the tax system
Persons fiscally resident in Austria are subject to tax on all income generated on a worldwide basis; non-resident subjects are instead required to pay the tax only for income earned in Austria . For the purposes of applying income tax ( Einkommensteuer ), a natural person is considered to be fiscally resident in Austria when he has his domicile or habitually resides within the territory of the State .  Depending in cases, the non-resident must file a tax return or is taxed at source by withholding . In particular, according to the Austrian legal provisions, domicile is the place where a person occupies a property , the conditions of which, together with other circumstances, objectively lead to the presumption that it is his main residence. In any case, natural persons who appear to have spent in the country, on a continuous basis, a period of at least six months over the course of a year , are considered resident in Austria, without prejudice to the various applicable clauses contained in the treaties against double taxation.

In 2015 the Austrian Parliament ( Nationalrat ) approved the tax reform for 2015-2016.

The 2015 tax reform
The main innovations contained in the reform project include the reshaping of income brackets for individuals, an increase in the tax on investment income which will go from 25% to 27.5%, a taxation in brackets for real estate transfers that it replaces the single taxation of 3.5%, some innovations in the field of VAT with an increase in the level of taxation for some goods.

The calculation of the tax base and the types of income

The tax base is given by the sum of the individual income that falls into the following categories:

  • land income;

  • income from self-employment;

  • income from commercial activity;

  • income from employment;

  • capital gains;

  • rental income;

  • various income (including some types of capital gains and annuities).

 

Taxation on individuals 

The tax on individuals is progressive with rates. After deducting the expenses directly incurred for the production of the  redditi, the calculation of the tax due takes place through the application of progressive rates for income brackets which, from 1 January 2016, range from 0 to 55% . In any case, the current legislation allows further deductions related to the personal situation of the taxpayer, such as particular deductions for employees, pensioners, family burdens and single-income families. From 2013 then some expenses for family assistance services for children up to 10 years of age raised to 16 years of age if disabled are included among the deductible expenses of extraordinary value and up to a maximum of 2,300 euros per year.

 

Individual rates (since 2016)

Taxable income       _cc781905-5cde-3194905-bbcc3 _cc781905-5cde-3194905-bbcc3_ -3194-bb3b-136bad5cf58d_     _cc781905-5cde-3194-bb3b-136bad5cf5890d_ 3194c5905-bb7905 -3194-bbc5-3194b58905- 136bad5cf58d_       _cc781908-5cde-3194bbadd-136bcc5-3194bd5-1394bcc5-3194bcc5_ 3194-bb3b-136bad5cf58d_       3194bde-5bd3-136b58f58d_ _cc7904-badd5-136bcc3-5b58f58d_  Aliquota

From 0 euro       _cc781905-5cde-315890_ bb3b-136bd5-136b58c5-3194-bb3b-136badd5 5cde-3194-bb3b-136bad5cf58d_ at 11,000 euro     _cc781905-5cde-3194-bb3b-136905-5c58d81_b3b_bad5cf58d81-136c58d81-136c58d81_b 3194-bb3b-136bad5cf58d_       3194bde-5bd3-136b58f58d_ _cc7904-badd5-136bcc3-5b58f58d_       _cc781905-5cde-3194-bb5894_13bad5c5%

From 11.001 euro    a 18.000 euro   _cc781905-bb3b3b-3194bd5-136bd5-136bbadd5-136bd5-3194bbadd5       _cc781905-5cde-3194-bb589094-136bad5cde-3194-bb589094-136bad5ccc3 -bb3b-136bad5cf58d_       _cc7819094-badd5-136bcc5_b58f5-3194bd5-3194bd3-3194-bb58f5-badd3 %

From 18.001       _cc781905-5cde-319490_b3bcc5-136b58d5-3194c5bad7-136bcc5-3194c5badd-136b58d5-136b58f5 -3194-bb3b-136bad5cf58d_a 31,000 euro     _cc781905-5cde-3194-bbde3b81- 136905cf58d_3194-5c3b_3194-194c3b_b3195_3194- bb3b-136bad5cf58d_       _cc7819094-badd5-136bcc5__cc7819094-5cde-136badc5-3194-badd-136bcc5_ 5cde-3194-bb3b-136bad5cf58d_       35%

From 31.001     _cc781905-5cde-3194-bb3b-136bad5cf58d-136bad5cf58d_     _cc781cc5-5cde-319490_b3bcc5-136b58d5-3194c5badc5-136b58d5 -3194-bb3b-136bad5cf58d_a 60,000 euros     _cc781905-5cde-3194-bbde3b81- 136905cf58d-135_3194-5c3b-84cf58d_b bb3b-136bad5cf58d_       _cc7819094-badd5-136bcc5__cc7819094-5cde-136badc5-3194-badd-136bcc5_ 5cde-3194-bb3b-136bad5cf58d_       42%

From 60.001     _cc781905-5cde-3194-bb3b-136bad5cf58d-136bad5cf58d_     _cc781905-5cde-3194905-bb3bbad-136bcc5-136b58f5-3194c5bad5 -3194-bb3b-136bad5cf58d_a 90,000 euro     _cc781905-5cde-3194-bbde3b81- 136905cf58d_3194-3194-54905 -1394c5-3194c3b81- 136905cf58d5 bb3b-136bad5cf58d_       _cc7819094-badd5-136bcc5__cc7819094-5cde-136badc5-3194-badd-136bcc5_ 5cde-3194-bb3b-136bad5cf58d_       48%

From 90.001     _cc781905-5cde-3194-bb3b-136bad5cf58d-136bad5cf58d_     _cc781cc5-5cde-3194905-bb3bbadd-136bcc5-136b58f8-3194c5bad7-136b58d5 -3194-bb3b-136bad5cf58d_a 1 million euro     _cc781905-5cde-3194-bb3b81- 136905cf58d81_3194-bad5cf58d-136c3b-136905cf58d81_ 3194-bb3b-136bad5cf58d_       3194bde-5bd3-136b58f58d_ _cc7904-badd5-136bcc3-5b58f58d_  50%

more than 1 million euro       _cc781905-5cde-3194b5bad-136bcc3 _cc781905-5cde-3194b5-bbcc3 136bad5cf58d_       _cc781908-5cde-3194bbadd-136bcc5-3194bd5-1394bcc5-3194bcc5_ 3194-bb3b-136bad5cf58d_       3194bde-5bd3-136b58f58d_ _cc7904-badd5-136bcc3-5b58f58d_  55%

Categories exempt from taxation
The types of salaries and services not subject to taxation include:

  • family allowances;

  • maternity allowances and the like;

  • social security checks;

  • allowances for parental leave, parental assistance and childcare;

  • disability allowances;

  • contributions for nursing care and support for expenses.


The income tax of legal persons
In 2005, the corporate tax rate fell from 34% to 25% . A choice partially financed by expanding the tax base and abolishing the 10% subsidy for increasing investments in machinery and equipment. In recent years, the tax incentives for research and development have increased steadily and today provide a tax credit of 12%.
Resident companies, which have their registered or administrative office in Austria, are subject to a tax of 25% on income wherever they arise . In this case, the tax base is determined according to the comparative net asset value method. The amount of the taxable profit or loss is obtained, in fact, by calculating the difference between the net assets resulting at the beginning of the year and that resulting at the end of the year, adjusted on the basis of tax legislation . Foreign companies, on the other hand, are taxed only in relation to business income attributable to a permanent establishment located on Austrian territory; in the absence of a permanent establishment, the taxable income is determined on the basis of the same income categories envisaged for individuals. Expenses are generally considered deductible if directly related to the production of income . The legal system then provides for the payment of an alternative minimum tax of 1,750 euros each year for limited liability companies and 3,500 euros for joint-stock companies.

The value added tax
The Austrian legislation on value added tax is governed by Law No. 663 of 1994 ( Umsatzsteuergesetz ), with which Austria conformed to European legislation, implementing the sixth EU directive on the subject . Those who carry out an independent commercial or professional activity are required to pay the tax. There is no distinction between resident and non-resident entities. The tax base is represented by the agreed fees for all supplies of goods or services performed within the Austrian territory. The 2015 tax reform provided for the introduction of cash registers for activities with a turnover exceeding 15 thousand euros. and services. More precisely, the Austrian tax legislation provides:

  • 20% standard rate ;

  • 13% cultural services, museums, zoos, internal flights, public swimming pools, animals, seeds and plants;

  • 10% rate that applies to the sale of foodstuffs considered essential, such as milk, fish, eggs, fruit and vegetables, coffee, sugar, oil, as well as books, newspapers and magazines, hotel services, public transport services, the rental of properties for private use, the supply of electricity, pharmaceutical products, agricultural production;

  • exemption for banking transactions and zero tax rate that applies to exports.


Other taxes

Investment Income Tax

The tax rate on investment income is 27.5% while the capital gains tax applied to the sale of real estate is 30% ._ cc781905-5cde-3194-bb3b-136bad5cf58d_

Real estate transfer tax
The tax includes the sale of shares in real estate companies held by a single shareholder and the transfer of properties into companies. The taxation is in income brackets (three different types) and has replaced the single tax of 3.5%.

OUR PRESENCE IN AUSTRIA

Our office in the center of Vienna can count on the support of a firm of Accountants  founded in 1988 and made up of 8 Partners as well as a staff of over 15 people who work quotidianamente in the areas of auditing, payroll processing, accounting, tax assistance and compliance. 

Do you need support in Austria?

 

Contact us

0363 360254

info@studio-bcs.com

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