Corporate income tax

Who has to pay corporate income tax in Austria?

Whereas all natural persons must pay income tax, legal persons are subject to corporate income tax (corporate income tax liability). Corporate income tax is calculated from income determined in accordance with income tax law, with all revenue of capital companies being classified as revenue from business operations.

Corporations are independently endowed with rights and subject to obligations, and have their own legal personality. They act through their governing bodies or legal representatives. A corporation can be, for example, a stock corporation under Austrian law (AG) or a limited company under Austrian law (GmbH), but also an association or a municipality.

How is corporate income tax calculated?

Corporate income tax is 23 per cent (until the year 2022: 25 per cent, in 2023: 24 per cent) of taxable income, irrespective of the level of income. Unlike income tax, corporate income tax is not charged on a graduated progressive scale, but is a standard rate.

For companies with share capital subject to unlimited tax liability, there is a minimum tax of five per cent of one quarter of the statutory minimum level of the nominal or share capital for each full calendar quarter.

How do I pay corporate income tax?

Corporate income tax is assessed and paid in the same way as income tax. This also applies in particular to the advance payments, which are determined by decision and are due on the following dates: 15 February, 15 May, 15 August and 15 November.

The corporation must submit a corporate income tax return for the previous calendar year (or for a different financial year). The tax office assesses the corporate income tax according to the income that the corporation received in this calendar year or financial year and then issues a decision. A payment term of one month is provided for subsequent payments that are determined on the basis of the assessment.