Profits are taxed at a flat rate of 34 %. There is also a minimum corporate income tax, payable by companies in a tax-loss position. The minimum corporate income tax amounts to € 450 for limited liability companies (GmbH) and € 900 for stock corporations (AG) for each quarter. To promote the foundation of new companies the minimum corporate income tax is in both cases reduced to € 275 for the first year. The minimum corporate income tax is credited against future taxable profits.

VAT is chargeable on the sale of most goods and services except exports. The standard rate is 20 %; a certain limited range of goods and services is taxed at 14 or 10 %.

Capital transfer tax is impose at a rate of 1 % on the initial contribution of capital and other contractual or voluntary contributions in cash or in kind.

Real property transfer tax is at a rate of 3.5 % (reduced rate 2 %) on the transfer of title of real estate situated in Austria.

Stamp duties have to be paid to certain documents and legal transactions documented by contracts or deeds.

Further taxes and duties additional to those mentioned above exist.

Business start-ups underlie special rules allowing reduced tax rates in many fields in the first years. Furthermore there are many institutions and regions granting subsidies and financial to assist people who are starting up a company.

Tax laws are changed, updated or reformed very often, which makes it difficult and time-extensive for company-founders and managers to be up to date. As consultants it is of course our duty to keep track of all changes in law, looking for the best way to give your company the leading edge.