Taxation in Austria
Encyclopedia
In Austria
, the income tax
for individuals in 2005 was progressively set up to 50% on a four-bracket progressive schedule: 21% (on taxable
income from €3,640 to €7,270; 31% (€7,270 to €21,800); 41% (€21,800 to 50,870); and 50% above €51,000. Married people are taxed separately. Payroll withholding tax is in effect.
Taxes are levied on corporations (25% on distributed and undistributed profits), trade income, real estate
, inheritance, dividends, gifts, and several miscellaneous services and properties. A value-added tax was introduced January 1, 1973 at a basic rate of 16%. The standard rate in 2005 was 20%. A reduced rate of 10% applied to basic foodstuffs, agricultural products, rents, tourism
, and entertainment; banking transactions are exempt and exports are untaxed. There was also an augmented rate of 32% on automobile
s, airplanes, and ship
s.
Capital gains and dividend income are taxed at 25% and are withheld at the source. There is no wealth tax
. In accordance with EU guidelines, tax exemptions and reductions are included in incentive packages for investment in economically depressed and underdeveloped areas along Austria’s eastern border.
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
, the income tax
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
for individuals in 2005 was progressively set up to 50% on a four-bracket progressive schedule: 21% (on taxable
income from €3,640 to €7,270; 31% (€7,270 to €21,800); 41% (€21,800 to 50,870); and 50% above €51,000. Married people are taxed separately. Payroll withholding tax is in effect.
Taxes are levied on corporations (25% on distributed and undistributed profits), trade income, real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
, inheritance, dividends, gifts, and several miscellaneous services and properties. A value-added tax was introduced January 1, 1973 at a basic rate of 16%. The standard rate in 2005 was 20%. A reduced rate of 10% applied to basic foodstuffs, agricultural products, rents, tourism
Tourism in Austria
Tourism forms an important part of Austrias economy, accounting for almost 9% of the Austrian gross domestic product.As of 2007, the total number of tourist overnight stays is roughly the same for summer and winter season, with peaks in February and July/August.In 2007, Austria ranked 9th worldwide...
, and entertainment; banking transactions are exempt and exports are untaxed. There was also an augmented rate of 32% on automobile
Automobile
An automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...
s, airplanes, and ship
Ship
Since the end of the age of sail a ship has been any large buoyant marine vessel. Ships are generally distinguished from boats based on size and cargo or passenger capacity. Ships are used on lakes, seas, and rivers for a variety of activities, such as the transport of people or goods, fishing,...
s.
Capital gains and dividend income are taxed at 25% and are withheld at the source. There is no wealth tax
Wealth tax
A wealth tax is generally conceived of as a levy based on the aggregate value of all household holdings actually accumulated as purchasing power stock , including owner-occupied housing; cash, bank deposits, money funds, and savings in insurance and pension plans; investment in real estate and...
. In accordance with EU guidelines, tax exemptions and reductions are included in incentive packages for investment in economically depressed and underdeveloped areas along Austria’s eastern border.