A Guide to Corporate Taxes in Austria

What Is the Corporate Tax Rate in Austria?

Austria levies a flat 23% corporate income tax (Körperschaftsteuer) on company profits from 2024 onward, per the Austrian business service portal USP.gv.at. The rate is a standard rate, not a graduated progressive scale. USP.gv.at states plainly that corporate income tax “is not charged on a graduated progressive scale, but is a standard rate.” The 23% applies regardless of profit size.

The rate was cut in stages under Austria’s Eco-Social Tax Reform (Ökosoziale Steuerreform).

The current 23% is the lowest rate on record, according to Trading Economics data.

How Does Austria’s 23% Rate Compare to Its Neighbors?

Austria’s 23% flat rate sits below Germany and Italy and just above the Czech Republic among its trading neighbors. The comparison matters for groups choosing where to book profit or place a holding company.

Who Pays Corporate Income Tax in Austria?

Legal persons pay corporate income tax in Austria, while natural persons pay personal income tax. Covered bodies include the AG (Aktiengesellschaft, stock corporation), the GmbH (Gesellschaft mit beschränkter Haftung, limited liability company), associations, and municipalities. A company with its legal seat or place of effective management in Austria has unlimited liability on worldwide income, per PwC Worldwide Tax Summaries.

Non-residents face limited liability. They are taxed only on Austrian-source income, such as profits from a permanent establishment or Austrian real estate. All revenue of a capital company counts as business income. An Austrian subsidiary of a foreign parent is a resident company, so it is taxed on worldwide income like any other Austrian corporation.

What Is the Minimum Corporate Income Tax for a GmbH or AG in Austria?

A GmbH pays a minimum corporate income tax of €125 per quarter (€500 per year) from 1 January 2024, and an AG pays €875 per quarter (€3,500 per year). The GmbH figure fell because the Gesellschaftsrechts-Änderungsgesetz 2023 (FlexKapGG) cut the GmbH minimum share capital to €10,000, effective 1 January 2024, per WKO. Minimum CIT equals 5% of one quarter of the statutory minimum capital.

The €125 per quarter rule applies to all GmbHs from 2024, which replaces the old staged schedule for new companies. Minimum CIT paid in loss years is treated as a prepayment and carries forward with no time limit, credited against future actual CIT, per WKO.

How Is Taxable Income Determined for Austrian Corporate Tax?

Taxable income is net profit under income tax law rules, and CIT of 23% applies to that profit. Companies start from their commercial financial statements, then adjust for tax, deducting operating expenses, straight-line depreciation of business assets, and recognized provisions, per PwC Worldwide Tax Summaries. Certain items are not deductible, including manager salaries above €500,000 and some related-party interest and royalty payments.

Austria caps net interest deductions under its ATAD interest barrier. Net borrowing costs are deductible up to 30% of tax EBITDA, with a €3 million safe-harbour threshold, per PwC.

Can Losses Be Carried Forward in Austria?

Yes, Austrian tax losses carry forward indefinitely, with no carryback, per PwC. An annual offset cap applies for corporations. Carried-forward losses can shelter only 75% of taxable income in a given year, so at least 25% stays taxable. Minimum CIT credits also carry forward with no limit, which lets loss-making companies recover the floor payments in later profitable years.

What Withholding Tax Applies to Dividends in Austria?

Dividends to individuals carry 27.5% withholding tax (Kapitalertragsteuer, KESt), and dividends to corporate recipients carry 25%, per PwC Worldwide Tax Summaries. Domestic inter-company dividends are generally exempt under the participation privilege. The 23% CIT rate is a profits tax, not a dividend withholding rate.

Tax treaties often cut source withholding to 5% on inter-company dividends and 15% on portfolio dividends.

Does Austria Apply the Pillar II Global Minimum Tax?

Yes, Austria applies the Pillar II global minimum tax through the Mindestbesteuerungsgesetz (MinBestG), which implements the EU Minimum Taxation Directive for fiscal years from 31 December 2023. It imposes a 15% effective minimum rate on groups with consolidated revenue of €750 million or more in at least two of the last four years, per PwC.

Austria’s 23% rate sits well above 15%, so a purely Austrian group rarely triggers top-up tax. Exposure usually comes from low-taxed foreign subsidiaries elsewhere in the group.

What Tax Credits and Incentives Can Companies Claim in Austria?

The headline incentive is the 14% research premium (Forschungsprämie), a refundable cash credit paid even in loss years, per WKO. Claims require certification from the Austrian Research Promotion Agency (FFG). Subcontracted R&D qualifies up to a €1 million annual cap, and either the principal or the agent claims it, not both.

R&D expenses are fully deductible in the year incurred under the OECD Frascati Manual. Foreign withholding tax credits against Austrian CIT, and matching credits apply under certain treaties, including Brazil, China, and Korea. Austria has no patent box regime, so there is no reduced rate on intellectual property income.

How Do You File Corporate Taxes in Austria?

Companies file the Form K corporate income tax return electronically through FinanzOnline, accessed with ID Austria. The USP Business Service Portal at usp.gv.at integrates with FinanzOnline for business administration. The standard enclosures are the annual financial statements, meaning the balance sheet and the profit-and-loss account, plus evidence for deductions and credits claimed.

The research premium is claimed through a separate electronic application inside FinanzOnline, filed alongside the corporate return. Verify the current application reference on the Federal Ministry of Finance (BMF) site before you submit, because form codes change between tax years.

When Is the Corporate Tax Filing Deadline in Austria?

Electronic corporate tax returns are due 30 June of the year following the fiscal year. With a certified Austrian tax advisor under the quota system, the deadline extends to 31 March of the second following year. The tax year is usually the calendar year, though a divergent fiscal year is allowed.

How Do Quarterly Prepayments of Austrian Corporate Tax Work?

Austrian corporate tax is prepaid in four installments on 15 February, 15 May, 15 August, and 15 November, based on the most recently assessed year, per the BMF deadlines page. The balance is due one month after the final assessment notice (Bescheid).

A company expecting lower profit can apply to the tax office to reduce its prepayments, including down toward the minimum CIT when a loss is likely. Excess prepayments are refunded or credited after assessment. Claim interest of 4.53% runs on both underpayments and overpayments from 1 October of the following year until assessment, per BMF. Verify the current interest rate and the reduction deadline against BMF before you rely on them.

What Are the Penalties for Late Corporate Tax Filing in Austria?

Austria’s tax office can impose a late-filing surcharge (Verspätungszuschlag) of up to 10% of the assessed tax, per the Federal Fiscal Code (Bundesabgabenordnung, BAO). A late-payment surcharge (Säumniszuschlag) of 2% of the unpaid tax applies, with further 1% surcharges on continued default. Claim interest of 4.53% then accrues on underpayments from 1 October of the following year.

Verify every rate against BAO and BMF before publication. Deliberate evasion escalates from administrative surcharges to fiscal criminal law.

Are There Local or Other Business Taxes in Austria?

Austria levies no local or state tax on corporate profits, which keeps the profit tax simple. Employers do pay a municipal tax (Kommunalsteuer) of 3% on payroll, per WKO. Austria’s standard value-added tax (VAT) rate is 20%, with reduced rates of 10% and 13% for context, per Trading Economics.

How Do Austria’s Tax Treaties Prevent Double Taxation?

Austria’s wide double tax treaty network allocates taxing rights between countries and relieves double taxation through the credit method or the exemption method with progression. Treaties commonly reduce source withholding to 5% on inter-company dividends and 15% on portfolio dividends, per PwC.

To claim treaty relief, an Austrian resident presents a certificate of residence on Form ZS-A, issued by the BMF through FinanzOnline. Taxation in a treaty partner generally needs a permanent establishment, such as a fixed place of business or a construction site lasting over 12 months. If both countries claim taxing rights, companies can open a Mutual Agreement Procedure (MAP) to resolve the dispute between competent authorities.

How We Help With Corporate Tax Compliance in Austria

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Use the Commenda compliance calendar to track filing deadlines by country and entity, and the global tax ID verification tool for cross-border payments and treaty documentation. If you need local help filing, see the best corporate compliance service providers in Austria. Commenda connects to 100+ ERPs, APIs, and custom integrations.

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