Austria Accounting & Tax Glossary

Austrian employer social contributions on employee gross salary. DB (Dienstgeberbeitrag) 3.9%, DZ (Dienstgeberzuschlag) ~0.36–0.44%, Municipal tax (Kommunalsteuer) 3%, plus employer ASVG contributions of approximately 21%. Total employer costs run approximately 40% above gross salary.

Austria's three principal work relationships: Dienstnehmer (employee, full ASVG contributions), freier Dienstnehmer (dependent contractor, ASVG contributions apply), and Werkvertrag (independent contractor, SVS not ASVG). Classification determines social insurance and tax treatment — misclassification carries significant penalties.

Austrian social insurance for self-employed individuals and GmbH shareholders owning more than 25% of shares. SVS contributions are approximately 26.8% of net income (covering health, pension, and accident insurance). The minimum contribution is around €180/month.

Austrian progressive personal income tax for sole traders, GmbH directors, and individuals. Rates: 0% up to €12,816, rising progressively to 55% above €1 million. The 55% rate (Spitzensteuersatz) applies as a temporary surtax on the highest earners.

Austrian VAT exemption for businesses with annual turnover below €35,000. Qualifying businesses do not charge USt and cannot reclaim input Vorsteuer. Harmonised with EU 2025 SME rules. Businesses can opt in to voluntary USt registration at any time.

Austria's corporate income tax at a flat 23% rate (reduced from 25% in 2024) on the taxable profits of GmbHs and AGs. A minimum tax (Mindestkörperschaftsteuer) of €500/year applies to GmbHs regardless of profit.

Quarterly corporate income tax advance payments due on 15 February, 15 May, 15 August, and 15 November. Based on the prior year's KSt liability. Underpayment results in Anspruchszinsen (interest charges). Minimum KSt of €500/year applies even with zero profit.

Austrian VAT (Umsatzsteuer) has three rates: 20% standard, 10% reduced (food, books, rent, medicine), and 13% intermediate (hotels, cultural events, wine at producer). The Kleinunternehmer threshold is €35,000/year turnover — below this, no VAT is charged.

Austrian losses can be carried forward indefinitely but are capped at 75% of annual taxable income in any given year. This means at least 25% of income is always subject to KSt, even in years with large brought-forward losses. No carry-back is permitted.

The Austrian commercial register, maintained by regional courts (Landesgerichte). All GmbHs and AGs must register and file annual accounts here. The Firmenbuchnummer is the company's official registration number, a legal prerequisite for business activity.

Austria's main private limited company structure. Requires €35,000 minimum share capital (€17,500 paid up at formation). Shareholders have limited liability. Must be formed by notarial deed and registered in the Firmenbuch (Austrian commercial register).

Austrian startup privilege allowing a GmbH to be formed with only €10,000 cash share capital (€5,000 paid up) during the first 5 years, instead of the normal €35,000. The reduced Mindestkörperschaftsteuer does not apply during the privilege period. Full €35,000 capital must be in place by year 10.