Taxation of companies

In the case of partnerships (companies constituted under civil law, open companies and limited partnerships) the individual partners/shareholders (natural persons) are subject to income tax. First, however, in a separate process prior to the income tax assessment, the profit from the business is calculated and certified. The value of the share of profits attributed to each individual partner/shareholder is determined according to the partnership/shareholder agreement and to the stipulations of the articles of association. This previously calculated share of the profits is then taxed for each partner/shareholder through his or her income tax return. The required annual declaration for determining shared income can also be submitted electronically via FinanzOnline, under Submissions/Declarations.

Traders registered on the business service portal (USP) are able to make use of FinanzOnline and many other online procedures with a single sign-in to the USP. More detailed information about registering with the USP can be obtained from the online advisor for USP registration.

Legal persons (e.g. limited companies (GmbH), public limited companies (AG)) pay corporate income tax of 23 percent instead of income tax. Profits can then be distributed to the partners/shareholders of the partnership/company and are then, as capital yields (income from capital assets) subject to further taxation at 27.5 percent – in the form of a capital yield tax deduction, in the case of distributions within Austria.

Legal bases

section 188 of the Bundesabgabenordnung (BAO)