Austria: Reduction of corporate income tax

The planned tax reform to be implemented by the Austrian Federal Government represents an important step towards specifically relieving the burden on companies as well.

The corporate income tax in Austria is to be reduced in two steps from 25 percent at present to 21 percent. If one considers the tax on profits paid by companies in the previous year, the tax reform will reduce the tax burden by about EUR 1.5 billion per year. The tax cuts are seen by the business community as a positive signal to strengthen the corporate sector and make Austria more attractive as a business location. The average corporate income tax in the EU is 21.9 percent.