[ESTABLISHING A BUSINESS ENTITY IN AUSTRIA]
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one year. In the case of an international box participation, profit distributions of the foreign subsidiary to the Austrian parent company are tax-free. 6.4 Capital gains tax Capital gains tax ( Kapitalertragsteuer , KESt ) is a special form of income tax. In the case of domestic income from capital assets, this income tax is levied by withholding tax. This means that the capital gains tax is withheld by the bank or the paying agent and paid directly to the tax office. Capital gains tax of 25% is imposed on investment income from cash deposits (e.g. for interest on savings books and current accounts). For all other income from capital assets, the tax rate is 27.5% (e.g. for dividends from shares in limited companies). Capital gains of a company are fully included in the taxable income and are taxed at the corporate income tax rate of 25%. Capital gains on sales of shares in foreign companies are exempt from Austrian income tax under certain circumstances. This Memorandum is for information purposes only and reflects Austrian law in August 2024. This Memorandum does not constitute legal advice and cannot replace personal consultation on a case-by-case basis. If you have any further questions about establishing a business in Austria or need general legal advice, please contact Mr. Andreas Bauer of Brauneis Rechtsanwälte, bauer@brauneis.law, +43 1 532 12 10. Brauneis Rechtsanwälte is one of the leading business law firms in Austria. We specialize in consulting in all areas of business law with a distinctly international orientation. We assist our clients in the long term and find sustainable ways to achieve their desired objective.
ILN Corporate Group – Establishing a Business Entity Series
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