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  • Service: Tax, International Executive Services
  • Type: Regulatory update, Survey report
  • Date: 2/26/2014

Other taxes and levies 

Taxation of international executives
Social security tax
Gift, wealth, estate, and/or inheritance tax
Real estate tax
Sales/vat tax
Unemployment tax
Other taxes


Social security tax

Are there social security/social insurance taxes in Austria? If so, what are the rates for employers and employees?


Austrian social insurance is compulsory and comprises health insurance, old-age pension insurance, unemployment insurance, and accident insurance.


The contributions are determined as percentage of the total monthly earnings (but only up to specified maximum amounts) and are paid partly by the employee and partly by the employer.


From 1 January 2014, the percentages are as follows.


Type of insurance Paid by employer Paid by employee Total
Pension insurance 12.55% 10.25% 22.80%
Accident insurance 1.40% 0.00% 1.40%
Health insurance 3.83% 3.82% 7.65%
Unemployment insurance* 3.00% 3.00%* 6.00%
Others 1.05% 1.00% 2.05%
Total 21.83% 18.07% 39.90%
Severance fund 1.53% 0.00% 1.53%

The other (minor) contributions payable are for housing purposes, to a special fund intended to safeguard wages and salaries against such contingencies as insolvency and to the chamber of labor.


* The employee-contribution for unemployment insurance is reduced depending on the income starting with 1 July 2008.


  • Income up to EUR1,219: 0 percent.
  • Income between EUR1,219 and EUR1,330: 1 percent.
  • Income between EUR1,330 and EUR1,497: 2 percent.
  • Income greater than EUR1,497: 3 percent.

Furthermore, individuals aged 56 years are exempted from contributions to unemployment insurance.


The employee’s portion of the various compulsory social security contributions is, for personal income tax purposes, deductible as an income-related expense.


The employer contribution of 1.53 percent is payable on the gross salary to a severance payment fund. This obligatory contribution applies to all private law employment contracts entered into from 1 January 2003, onwards.


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Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in Austria?


After a decision of the Austrian constitutional court inheritance and gift tax are abolished from 1 August 2008 onwards. (Up to now there are no plans to replace the tax.)


However, in order to prevent avoidance of income tax it is required to report gifts over EUR15,000 within five years (EUR50,000 within one year for relatives) to the tax authorities. There is a penalty of up to 10 percent of the value if the report was not done deliberately.


Currently, the Austrian Ministry of Finance is discussing a concept of wealth tax. However, it is uncertain if and when this concept will apply.


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Real estate tax

Are there real estate taxes in Austria?


Immovable property situated in Austria is subject to real estate tax. For individuals, real estate tax paid is deductible in case the property is used for business purposes.


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Sales/VAT tax

Are there sales and/or value-added taxes in Austria?


There are a number of indirect taxes that will affect an individual’s cost-of-living in Austria, including a European Community-style VAT of 20 percent.


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Unemployment tax

Are there unemployment taxes in Austria?


Contributions for an insurance against unemployment are included in the Austrian social security system. It is funded partly through the employee (3 percent, reduced depending on income from July 2008 onwards) and the employer (3 percent).


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Other taxes

Are there additional taxes in Austria that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.


No information provided.




© 2014 KPMG Alpen-Treuhand AG Wirtschaftsprfungs - und Steuerberatungsgesellschaft (Wien), an Austrian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

 

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 Austria – Topics

Taxation of international executives