The standard corporate tax rate for companies is 25%. The rate is planned to be reduced to 24% for the year 2023 and to 23% from the tax year 2024.
Capital gains are taxed at the same rate as corporate tax i.e., at 25%. Interest income from bank deposits is subject to a 25% withholding tax.
Taxation of Cryptocurrencies
Cryptocurrencies purchased after 28 February 2021 are classified as capital assets and income generated therefrom as well as gains on the sale of such cryptocurrencies are subject to a tax effective from 1 March 2022 at the rate of 27.5%.
Further, effective 1 March 2022, income generated from cryptocurrencies acquired before 1 March 2021 are also subject to tax at the rate of 27.5%. However, capital gains generated from the sale of cryptocurrencies acquired before 1 March 2021 remain covered by the old regime. Previously, interest bearing cryptocurrencies were considered as capital assets and taxed at the rate of 27.5% but others were considered as speculative transactions and were taxed at the regular rates.
Effective 1 January 2024, a withholding tax applies at the rate of 25% on capital gains realised on the sale of cryptocurrencies acquired after 1 March 2021. Prior to that, taxation will take place as part of the assessment, although tax may be voluntarily withheld.
Bank Stability Tax
Austria levies a bank stability fee based on the balance sheets of financial institutions at rates ranging between 0.024% and 0.029%. The lower rate applies for balance sheet totals of EUR 300 million to EUR 20 billion, and the higher rate applies for balance sheet totals exceeding EUR 20 billion.
Digital Services Tax
Effective 1 January 2020, the supply of online advertising services in Austria is subject to digital tax at the rate of 5%. Online advertising services include advertisements on a digital interface, in particular in the form of banner advertising, search engine advertising, and comparable advertising services.
Online advertising service providers are subject to the digital tax if:
- They provide or contribute to online advertising services for a fee, even if the provider is not the owner of the digital interface; and
- Have annual worldwide sales of at least EUR 750 million and Austrian sales of at least EUR 25 million from online advertising (sales thresholds are considered at the group level).
Windfall Tax on Oil and Gas Companies and Electricity Producers
On 21 December 2022, Austria introduced energy crisis contributions (windfall tax) on oil and gas companies and electricity producers.
For oil and gas companies, the energy crisis contribution applies from 1 July 2022 to 31 December 2023 at the rate of 40% on taxable profits exceeding 120% of the average taxable profits in the preceding four tax periods beginning on or after 1 January 2018. A deduction of up to 50% of the investment costs incurred for transitioning to renewable energy applies, provided the investments are made between 31 December 2021 and 1 January 2024. The deduction is capped at 17.5% of the contribution, thereby resulting in an effective minimum contribution rate of 33%.
For electricity producers, the energy crisis contribution applies from 1 December 2022 to 31 December 2023 at the rate of 90% of the revenue per megawatt hour exceeding EUR 140. A deduction of up to 50% of the investment costs incurred for transitioning to renewable energy applies, which is deductible from the assessment basis up to a maximum of EUR 36 per megawatt hour. This results in an effective increase in the revenue per megawatt hour cap to EUR 180.
Alternative Minimum Tax
The minimum tax is applicable for all companies, including companies incurring tax losses. The annual minimum tax is EUR 1,750 for an Austrian limited liability company and EUR 3,500 for an Austrian joint-stock company. A reduced minimum tax of EUR 500 for the first 5 years and EUR 1,000 for the following 5 years is applicable to new companies incorporated after 30 June 2013.