Austria important tax news 2025
February 2025Austria and China signed on September 14, 2023 a new protocol updating the 1991 double tax agreement, DTA, between the two counties.
According to the DTA the tax withholding rate for payments of dividends is 5%/10% depending on the percentage of holding in the paying company's capital.
For payments of interest the rate is 0%/10%.
There is no change regarding the tax withholding rate for payments of royalties.
1. Adjustments to Individual Income Tax Brackets:
Relief measures: Austria is adjusting individual income tax brackets as part of relief measures for 2025.
Increased thresholds: Most income tax bracket thresholds will be increased, except for the EUR 1 million threshold for the top 55% rate.
Revised brackets/rates: This will result in a new set of income tax brackets and rates, impacting how much individuals pay in income tax.
2. Changes to the Double Taxation Convention with China:
Protocol amendment: The Protocol amending the Double Taxation Convention (DTC) between Austria and China was signed and published in early 2025.
Key changes: The main changes include adjustments to withholding tax rates on dividends and interest, as well as enhanced exchange of information between the two countries.
Impact: These changes will affect individuals and businesses with cross-border activities between Austria and China.
3. Updates on Crypto Taxation:
Clarified rules: Austria has provided further guidance on the taxation of cryptocurrencies, clarifying the rules around capital gains, staking, and other crypto-related activities.
Flat tax rate: A flat tax rate of 27.5% applies to most crypto transactions.
Tax-free events: Certain events, such as buying crypto with fiat currency or trading one crypto for another, are tax-free.
Record keeping: It's crucial for individuals to keep accurate records of their crypto transactions to ensure proper tax compliance.
4. Telework Act and Tax Implications:
Modernized regulations: The Telework Act, effective from January 2025, modernizes Austria's telework regulations.
Tax allowance: Employees may receive a tax-free daily allowance for telework days from their employer.
Deductible expenses: Certain ergonomic home office expenses may be deductible under specific conditions.
5. Other Updates:
Public Country-by-Country Reporting: Certain entities are required to submit a Public Country-by-Country Report to the Commercial Register Court.
R&D Premium: The Tax Appeals Court has provided clarification on the assessment basis of the Austrian R&D premium.
Depreciation of Buildings: The Ministry of Finance has issued guidance on the depreciation of buildings in the case of renting and leasing.
Important Notes:
Tax laws are subject to change: Tax laws can be amended, so it's essential to stay updated on any further announcements or changes.
Seek professional advice: This information is general in nature and not personalized tax advice. If you have specific circumstances or require clarification, consult with a qualified tax professional.
I recommend keeping an eye on the websites of the Austrian Federal Ministry of Finance (Bundesministerium für Finanzen) and reputable tax news sources for the latest updates and detailed information.
Austria China Tax Agreement
October 2023Austria and China signed on September 14, 2023 a new protocol updating the 1991 double tax agreement, DTA, between the two counties.
According to the DTA the tax withholding rate for payments of dividends is 5%/10% depending on the percentage of holding in the paying company's capital.
For payments of interest the rate is 0%/10%.
There is no change regarding the tax withholding rate for payments of royalties.
Austria Tax Reform
October 2021The Austrian government presented on October 3 , 2021 its proposal for tax reform.
The tax reform includes, inter alia, reduction of the corporate income tax rate from 25% to 24% in 2023 and further to 23% in 2024.
Certain tax brackets for individual taxpayers will be reduced too from July 2022 and from July 2023.
Austria Israel Tax Treaty
March 2018The 2016 double tax treaty, DTA ,between the two countries entered into force on March 1,2018. Applying from January 1, 2019.
According to the DTA the tax withholding rates will be 0%/10%/15% for payment of dividends and 0%/5% for payment of interest.
Royalties income will be taxed only in the recipient's place of residence.
Austria Bosnia Herzegovina Double Tax Treaty
February 2012The double tax treaty, DTA, between Austria and Bosnia and Herzegovina which was signed on December 16 2010 entered into force on January 1, 2012.
The DTA which is in line with the OECD model includes, inter-alia, tax withholding rates of 5%/10% on dividends, 5% on interest and 5% on royalties.
Austria Tax Rates 2009
February 2009There are no signifant changes in the 2009 tax rates compared to 2008.
The Austrian corporate tax rate for 2009 is 25%. Personal tax rtates are progressive, up to 50%.
The standard V.A.T. rate is 20%, There is also a reduced V.A.T. rate of 10%.
Austria - EU Taxes
January 2006The Austrian chanceller called on 18.1.2006 for new taxes to be imposed on European Union citizens, financing the EU budget.
The suggestion to give the EU power to levy taxes directly on European Union citizens is expected to meet strong opposition from some EU member states.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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