Europe

Austria

Corporate rate
23%
Top personal rate
55%
VAT / GST rate
20%
One-sentence summary Austria's corporate tax position: 23. Personal income tax: 55 (until 2029, then 50%). VAT/consumption tax: 20.

Corporate Tax Rate

Austria's headline corporate income tax (CIT) rate is 23.

Personal Tax Rate

The headline personal income tax (PIT) rate is 55 (until 2029, then 50%).

VAT / GST Rate

The standard VAT/GST (or equivalent consumption tax) rate is 20. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.

Residency

An individual is an Austrian tax resident if domiciled in Austria or if they have a habitual abode there - generally assumed once presence exceeds six months. A company is Austrian tax resident if incorporated in Austria or managed and controlled from Austria. Residents are taxed on worldwide income; non-residents only on Austrian-source income.

CFC Rules (Hinzurechnungsbesteuerung)

Introduced by the 2018 Annual Tax Act (Section 10a KStG, implementing EU ATAD), Austria's CFC regime applies where an Austrian corporate shareholder holds a controlling participation (directly or indirectly) in a foreign entity generating low-taxed passive income - dividends, interest, royalties, and similar financial income. The foreign entity's income counts as "low-taxed" if its effective foreign tax burden is 12.5% or less. An exclusion applies where passive income makes up one-third or less of the foreign entity's total income. Where triggered, low-taxed passive income is included in the Austrian shareholder's tax base; any non-refundable foreign tax already paid is creditable, though CFC losses cannot be attributed to the Austrian shareholder (they instead carry forward to offset the CFC's own future income).

Thin Capitalization / Interest Limitation

Austria has no statutory thin capitalization ratio, though courts have developed principles for reclassifying undercapitalized related-party debt as hidden equity (with resulting interest treated as a non-deductible, withholding-tax-liable dividend). Separately, Section 12a of the Corporate Income Tax Act (implementing ATAD) caps deductible net interest at 30% of tax-EBITDA where debt leverage exceeds the group average, with a EUR 3 million de minimis exemption applying per company (or per group, for tax groups) regardless of EBITDA. Additionally, intragroup interest paid to a foreign connected party that is low-taxed or untaxed on that interest is denied recognition entirely for Austrian tax purposes.

Treaty Network

Austria has signed 100 double taxation treaties.

Source: PwC Worldwide Tax Summaries - Austria (secondary compilation, cited per jurisdiction). Rates last reviewed by PwC: 23 July 2026. Page last verified: August 07, 2026. General information only - confirm current rates and any specific position with a licensed advisor in this jurisdiction before relying on this page.