Corporate Income Tax

Taxable earnings of corporations, especially those of Private or Public Limited Companies (GmbH or AG), are subject to a nominal corporate income tax of 25% independently of the level of earnings.
 
The effective burden of corporate income tax figures at low 21.97% (more).
 
This low taxrate, connected with the new Group Relief makes an investment in Austria more interesting, and is an adequate answer to the extension of the European Union by ten new member states.
 
A minimum corporate income tax of EURO 1,750 (reduced to EURO 1,090 for the first year) is levied in any case, but this can be deducted from such taxes in future insofar as it is not adequate to profit or loss of the relating year. Dividends received from subsidiaries are in principle not subject to taxation, however.
A 'trade tax', such as is levied in Germany at present, was abolished in Austria at the end of 1993.
 
The taxable income of a company is the result of turnover less operating expenses, taking into account losses incurred over the preceding years, up to 75% of the income of the year. The attribution of subsequent losses to earlier years of profitable operation is not permitted.