[ESTABLISHING A BUSINESS ENTITY IN AUSTRIA]
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Employment Nationals: According to the AuslBG workers from third countries (non-EU/EEA countries) require – as mentioned above – a combined work and residence permit to be granted long- term access to the labour market in Austria. Such a permit enables them to work for a specific employer (e.g., with a so- called Rot-Weiß- Rot-Karte ) or grants free access to the labour market (e.g., with a so-called Rot-Weiß-Rot- Karte Plus ). It can be noted here that issuing such a work visa is made easier if a highly qualified and well-paid worker is to be recruited. 6. Taxation of Non-EU/EEA The tax burden on corporate profits in Austria depends on the legal form of the company, the amount of profit generated and lastly on whether the profit is distributed or withdrawn by the shareholders or not. 6.1 Income tax and corporate income tax Austrian tax law knows two different income taxes: income tax ( Einkommenssteuer , ESt ) and corporate income tax ( Körperschaftssteuer , KÖSt ). While the income tax ( ESt ) for individuals is designed as a progressive tax-system depending on the actual amount of income, the corporate income tax ( KÖSt ) is set uniformly at 24% of the taxable income or, in the case of limited liability, at 24% of the taxable income earned within Austria. As of January 1, 2024, the corporate income tax ( KÖSt ) will be reduced to 23%. Legal entities that fall under the corporate income tax are limited companies (most notably GmbH and AG ), institutions and foundations, but also regional authorities and professional bodies (e.g., Chamber of Commerce). In contrast to other EU countries, there are no other taxes on the profit (e.g., a trade tax). Losses may be carried forward indefinitely. In each subsequent profit year, only 75% of
statements during liquidation. Further minority rights result from the majority requirements for shareholder resolutions. Resolutions which require a majority of three quarters of the cast votes, e.g., amendments to the Articles of Association ( Gesellschaftsvertrag ), can be prevented by more than 25% of the cast votes (blocking minority). It may be noted that the rights of minority shareholders in joint-stock companies ( AG ) are like the aforementioned rights in the limited liability company ( GmbH ). 5. Employment Law 5.1. Employment of foreign citizens The employment of foreign citizens is subject to various restrictions and controls under the Employment of Foreign Citizens Act ( Ausländerbeschäftigungsgesetz , AuslBG ), which forms the basis for the access of foreign workers to the Austrian labour market. The AuslBG aims to regulate the ordered access of foreign workers to the Austrian labour market and ensures that they are employed under proper working conditions and wages. Employment of EU/EEA Nationals: For nationals of EEA member states and Switzerland, the rules of free movement of workers apply substantially in the same way as for citizens of EU member states. EU/EEA nationals have free access to the Austrian labour market according to EU law and require no employment or working permit. EU/EEA citizens who wish to stay longer than three months in Austria only need a registration certificate. This is issued by the competent residence authority.
ILN Corporate Group – Establishing a Business Entity Series
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