Doing business in Austria - PKF

Taxation
Introduction
The tax status of a business entity depends on whether it is
incorporated or not. Corporations (mainly GmbH and AG) are taxed on
their net profits at the corporate level and are subject to national
corporate income tax, which is presently levied at a flat tax rate of
25%. There are no other taxes levied on the income of corporations.
Individuals who are resident in Austria are liable to Austrian income
tax at graduated marginal rates ranging from 0% to 50%.
Income Taxation Law and Administration
The Austrian income tax regime is contained with a number of
statutes, the centrepieces being the Income Tax Act 1988 and the
Corporate Income Tax Act 1988. Both have been revised and
amended countless since their introduction; in fact small amendments
happen to take place every year whereas more comprehensive and/or
systematic changes are rather seen every 5-10 years. The federal
taxation system is administered by the Minister of Finance, through
local tax offices.
Fiscal Year
The standard Austrian financial year is the calendar year. However,
with the consent of the tax authorities, companies may choose
financial years other than the calendar as long as they comprise 12
months.
12 PKF - Doing business in Austria - Taxation