Austria

Social security contributions

Monthly rates of compulsory (pre-tax) social security contributions are shown below for pensions, sickness, unemployment, accident insurance, and certain minor contributions:

* On a maximum assessment basis (gross salary) of EUR 6,060 per month for current payments and is applied for both employer and employee. Special payments receive a tax favoured treatment (employer at 20.48%, employee at 17.07%, for a total of 37.55%). The maximum assessment basis (gross) amounts to EUR 12,120 per year.

There is also a possibility that family members can be co-insured without any additional contributions. An additional insurance contribution of 3.4% from the calculation base is collected, e.g., in cases when the co-insured person (a spouse, a registered partner, or a person running the household) does not bring up a child/children living in the common household or did it for at least four years.

In addition, the employer is liable to the Family Burdens Equalisation Levy at the rate of 3.9%, the municipal tax on payroll at the rate of 3% of monthly gross salaries and wages, and a public transportation levy of EUR 2 per week per employee in the city of Vienna. In addition, a contribution to the Chamber of Commerce is levied at a rate between 0.32% and 0.40% of monthly gross salaries paid (depending on the province). Moreover, a contribution to the mandatory employee pension fund at the rate of 1.53% on monthly gross salaries is payable for employments subject to Austrian employment law.

Consumption taxes

Value-added tax (VAT)

Generally, the Austrian VAT law is based on the 6th European Union (EU) VAT Directive. Under the Austrian VAT law, companies and individuals carrying out an active business on a permanent basis are qualified as entrepreneurs for VAT purposes. As entrepreneurs, they have to charge the supply of goods or services provided to their customers with Austrian VAT at a rate of 20%. A certain limited range of goods and services (such as food, books, passenger transportation, cultural events) is taxed at the reduced rate of 10% or 13%. Certain other transactions are exempted from Austrian VAT (e.g. export transactions).

Input VAT

Entrepreneurs are entitled to deduct Austrian input VAT insofar as the input VAT does not result from goods/services purchased that are directly linked to certain VAT exempt sales (e.g. interest income, insurance premium). However, certain transactions are exempt from Austrian VAT (e.g. export transactions) without limiting the ability of the entrepreneur to deduct the related input VAT. To be entitled to deduct input VAT, the entrepreneur must obtain an invoice from one's supplier that fulfils certain formal requirements.

VAT filing and payment

Entrepreneurs have to file monthly or quarterly VAT returns by the 15th day of the second month following the month concerned or by the 15th day of the second month following the quarter concerned. The balance of the VAT due and the input VAT deducted has to be paid to the tax office (if VAT burden) or is refunded by the tax office (if in a net input VAT position) to the electronic tax account of the entrepreneur. A separate report has to be filed by the entrepreneur at the tax office showing the cross‑border intra EU‑transactions made.

Net wealth/worth taxes

There is no wealth/worth tax in Austria.

Inheritance, estate, and gift taxes

There are no inheritance, estate, or gift taxes in Austria.

Property taxes

Real property acquisition tax

The following tax is levied on the acquisition of real estate, including land and buildings, or any entitlements to build on Austrian real estate. The tax rate is generally 3.5% of the consideration paid, but the minimum of the property value. However, in case of non-remunerated acquisition (e.g. donations), the tax rate is scaled as follows:

Real estate tax

Austrian municipalities impose an annual tax on real estate. The assessment base is 0.1% to 0.2% of the assessed value of the real estate. This amount will be multiplied by the assessment rate determined by each municipality, which may range up to 500%. The annual maximum amount of the real estate tax is 1% of the assessed value. Instalments will be levied quarterly on 15 February, 15 May, 15 August, and 15 November if the real estate tax exceeds EUR 75 per annum.

Luxury and excise taxes

There are no luxury taxes in Austria.

Excise taxes are imposed on certain products, including certain energy products such as petroleum (approximately EUR 60 to EUR 600 per 1,000 litres), tobacco products (mixture of percentage and fixed amount per unit [kilogramme, number]), and alcoholic beverages.

Other non-income taxes

Stamp duty

Stamp duty is imposed in connection with certain legally predefined transactions for which a written contract has been established (e.g. lease contracts, bills of exchange). The Austrian administration's understanding of a ‘written contract’ is very broad and covers not only paper contracts but also contracts concluded by electronic means (e.g. electronically signed emails).

The stamp duty is triggered upon the establishment of a legal relationship if at least one Austrian party is contractually involved or, even if a contract is concluded between non‑Austrian parties only, if the subject of the contract relates to Austria (e.g. lease contract on Austrian real estate). However, various possibilities are available for most legal transactions subject to stamp duty to structure them in a way without triggering stamp duties (e.g. setting up of contracts abroad, offer‑acceptance procedure, usage of audio‑tapes).