Individual - Foreign tax relief and tax treatiesLast reviewed - 03 March 2023
Foreign tax relief
Austria has entered into DTTs with all major trading countries. Some of the treaties provide for elimination or partial elimination of double taxation by foreign tax credit (e.g. Canada, Japan, United Kingdom, United States). Under the majority of treaties, however, double taxation is avoided or partially avoided by an exemption-with-saving clause as to progression. As an exception to the rule, dividends and interest are usually fully taxable with a foreign tax credit.
The following table lists the countries with which Austria has signed DTTs:
|Bosnia and Herzegovina||Kuwait||Slovenia|
|Finland||Montenegro||United Arab Emirates|
- The treaty has been signed. It has not yet been decided when it will enter into force.
- Until a new treaty is established, the treaty with Czechoslovakia remains applicable.
Social security (totalisation) agreements
Austria has entered into agreements on social security with its major trading partners, under which, in most cases, it is possible for expatriates on temporary secondment from non-EU countries to apply for exemption from Austrian social security contributions for a certain period of time, provided home country social insurance continues. The Austrian social security authorities will ask for a home country certificate of coverage. For EU citizens, different rules apply (form A1).
Despite the countries where the EU-Directive 883/2004 is applicable (EU, European Economic Area (EEA), and Switzerland), Austria has agreed to totalisation agreements with the following countries:
|Bosnia and Herzegovina||Macedonia||Turkey|