Austria Tax Changes — Live Tracker

What changed

As part of the Ökosozialer Steuerreform (eco-social tax reform), Austria phased down KSt from 25% to 24% in 2023, then to 23% in 2024. A further reduction to 22% was proposed for 2025 — verify the current applicable rate with your Steuerberater. The minimum annual KSt (Mindestkörperschaftsteuer) for GmbH remains EUR 500. The KESt (Kapitalertragsteuer) on dividends and distributions remains at 27.5%.

Who it affects

• All Austrian GmbH and AG companies subject to corporate income tax
• Branches of foreign companies taxed as Austrian corporations
• Shareholders and investors calculating after-tax returns on Austrian corporate profits

What to do

Update your corporation tax calculations and financial projections to reflect the 23% KSt rate for 2024. If a further reduction to 22% was enacted for 2025, ensure your accounting software and advance tax payment (Vorauszahlungen) are adjusted accordingly. Review dividend distribution timing in light of the combined KSt and KESt effective rate on profits distributed to shareholders.

What changed

The Investitionsprämie was a non-repayable grant of 10% of investment value (or 14% for climate, digitalisation, and health-related investments) for capital expenditure between 1 August 2020 and 28 February 2024. The scheme was administered by aws (Austria Wirtschaftsservice). Claims could be submitted after the investment was made, and the processing of applications submitted before the deadline continues. Investments under EUR 5,000 (ex VAT) were excluded.

Who it affects

• Austrian businesses that made qualifying capital investments between August 2020 and February 2024
• Companies with pending Investitionsprämie applications not yet paid out
• Businesses planning future ecological or digital investments (note: original scheme ended)

What to do

If you made qualifying investments before 28 February 2024 and have not yet submitted a claim, check whether the aws portal still accepts late applications. If you have an approved claim not yet paid, follow up with aws directly. For future ecological or digital investments, monitor BMF and aws announcements for any successor scheme — the original Investitionsprämie programme is closed to new investments.

What changed

The MinBestG introduced both the Income Inclusion Rule (IIR) and a Qualified Domestic Minimum Top-Up Tax (QDMTT) for fiscal years starting on or after 1 January 2024. Groups with consolidated revenue of €750m or more must calculate effective tax rates per jurisdiction and pay a top-up tax where the rate is below 15%. The rules interact with Austria's Gruppenbesteuerung (group tax consolidation) rules, which may affect how effective rates are computed at entity level.

Who it affects

• Multinational enterprise groups with €750m+ consolidated annual revenue
• Austrian parent companies of qualifying MNE groups
• Austrian entities within foreign MNE groups subject to IIR or top-up tax

What to do

Groups exceeding the €750m threshold should assess their GloBE effective tax rate for each Austrian entity, taking into account interactions with the Gruppenbesteuerung regime. Prepare the GloBE information return as required under MinBestG. Engage a tax adviser with Austrian and international tax expertise to model any top-up liability and review existing tax planning arrangements for effective rate impacts.

What changed

Employers may pay employees a tax-free home office allowance of EUR 3 per day for days worked exclusively from home, up to a maximum of EUR 300 per calendar year. Where employers do not pay the allowance, employees may claim the same amount as Werbungskosten (employment expenses) in their income tax return. Additionally, employees can deduct up to EUR 300 per year for home office equipment (desk, ergonomic chair, IT equipment) purchased for work use at home. The rules apply to genuine home office days — commuting to the regular workplace disqualifies those days.

Who it affects

• Employees working from home on a regular or occasional basis
• Employers who have formally agreed home office arrangements with staff
• Self-employed individuals (though different rules apply for business premises)

What to do

If your employer pays a home office allowance, ensure they track eligible home office days and the EUR 300 annual cap is not exceeded. If no allowance is paid, claim EUR 3 per qualifying home office day (up to EUR 300) as Werbungskosten in your ArbeitnehmerInnenveranlagung (income tax return). Keep a record of your home office days and any equipment purchases to support the deduction.

What changed

Austria has required structured e-invoices for federal government procurement (B2G) since 2014 via the Peppol network and the platform e-Rechnung.gv.at. For B2B transactions, the EU's planned e-invoicing directive will require Austria to implement mandatory B2B e-invoicing by 2028. In the interim, voluntary Peppol B2B e-invoicing is supported and being actively promoted by WKO (Wirtschaftskammer Österreich). Austria is expected to formally legislate the B2B mandate before the EU deadline.

Who it affects

• All Austrian businesses supplying to federal government entities (mandatory B2G already in force)
• Austrian businesses that will be required to send structured B2B e-invoices by 2028
• Accounting software providers and ERP systems serving Austrian businesses

What to do

For B2G invoicing, ensure you are using the e-Rechnung.gv.at platform or a Peppol-connected system already. For B2B invoicing, begin evaluating whether your accounting software supports Peppol or EN 16931-compliant e-invoices and plan to adopt structured e-invoicing before the 2028 mandate. Voluntary early adoption improves processing times and reduces errors, and positions your business ahead of the compliance deadline.