Austria

Corporate - Significant developments

Last reviewed - 21 December 2022

Due to the worldwide corona pandemic, the government has implemented various measures. See Incentives related to COVID-19 in the Tax credits and incentives section for more information.

On 14 February 2022, the three parts of the Eco Social Tax Reform Act ('Ökosoziale Steuerreform') were published in the Federal Law Gazette. The main aim, besides the reduction of the corporate income tax (CIT) and a relief for low and medium incomes, is the introduction of a carbon tax as an incentive to reduce climate-damaging behaviour in the future. See Rates of corporate income tax (Körperschaftsteuer) in the Taxes on corporate income section and Environmental taxes and incentives in the Other taxes section for more information. 

The Tax Amendment Act 2022 ('Abgabenänderungsgesetz 2022') was published in the Federal Law Gazette on 19 July 2022. The Tax Amendment Act 2022 includes numerous measures, e.g. enhancements of the research and development (R&D) tax credit, an extension of the 0% value-added tax (VAT) rate for protective masks until 30 June 2023, national implementation of the European Union (EU) Directive DAC 7 (see EU Directive (DAC 7) in the Other issues section for more information). 

On 27 July 2022 the Business Energy Costs Subsidy Act (‘Unternehmens-Energiekostenzuschussgesetz – UEZG’) was published in the Federal Law Gazette.  The Act provides for relief for energy-intensive companies for the funding period February to September 2022. The financial support is granted in the form of a subsidy and will be paid out following successful application and accounting settlement.

The Austrian government has announced relief packages to mitigate the impacts on the population due to the huge wave of inflation. The first inflation relief package (‘Teuerungs-Entlastungspaket’) was published in the Federal Law Gazette on 30 June 2022. The package includes small adjustments to the deductible amount for pensioners, the surplus amount for children, and the family bonus plus (increased as of 1 January 2022, instead of 1 July 2022), as well as the introduction of a one-off inflation deduction (for incomes of up to EUR 24,500) for the tax assessment for 2022 and an inflation credit in the context of social security. In particular, the package introduced a new, temporary tax-exempt inflation bonus of up to EUR 3,000.

The second inflation relief package (‘Teuerungs-Entlastungspaket Teil II’) was published in the Federal Law Gazette on 27 October 2022. The  second part of the inflation relief package aims at abolishing or significantly mitigating the effect of bracket creep.

The third inflation relief package (‘Teuerungs-Entlastungspaket Teil III’) was published in the Federal Law Gazette on 31 October 2022. The package part III includes, in particular, indexing for sick pay, rehabilitation and reintegration pay, unemployment benefits, childcare payments, student grants, and other family support payments.

On 15 December 2022 the Council of the EU formally adopted the directive ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union. Austria and the other EU member states are obliged to implement the Pillar II rules as regards the effective tax rate of 15% for large-scale groups. The transposition is to be made until 31 December 2023, the new rules are to be applied as of 1 January 2024.