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Austria: Tax Reform Act 2015

On 20 March 2015, the Ministry of Finance of Austria published the first details of the planned Tax Reform. On 16 June 2015, the Austrian Government approved a draft version of the Tax Reform Act 2015. The reform will, in principle, be applicable from 1 January 2016.

 Corporate key elements of the reform are:

  • An increase of the withholding tax on investment income from 25% to 27.5%. The withholding tax on savings income will remain 25%.
  • The capital gains tax rate on the sale of real estate increases from 25% to 30%.
  • A single depreciation rate of 2.5% for buildings will be introduced.
  • The invention premium will be increased from 10% to 12%.
  • The real estate transfer tax rate will be changed by introducing a different rate structure. Instead of the single rate of 3.5%, transfers of property with a value of up to EUR 250,000 will be subject to a rate of 0.5%, transfers with a value of up to EUR 400,000 will be subject to a rate of 2% and transfers with a value of more than EUR 400,000 will be subject to a rate of 3.5%.
  • The VAT rate for certain supplies will be increased from 10% to 13% (e.g. animals, seeds and plants, cultural services, museums, zoos and domestic air travel).
  • Anti-fraud measures will be introduced. It is planned to introduce mandatory cash registers for businesses which mainly have cash transactions (applicable for businesses with a net turnover of more than EUR 15,000 annually).

As soon as the final bill is available, more details will be reported.

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