Austria

Austria's Rankings
CategoryRankScore
Overall Rank1271.35
Corporate Taxes1758.34
Individual Taxes2955.55
Consumption Taxes1175.92
Property Taxes1073.21
International Tax Rules495.68

Austria ranks 12th overall on the 2019 International Tax Competitiveness Index, one place worse than in 2018.


Strengths

  • Austria's international tax system is very good with a (1) broad tax treaty network of 89 countries, (2) Controlled Foreign Corporation rules that only apply to subsidiaries that do not have substantial economic activity, and (3) thin capitalization rules that are less complex than in most countries.
  • The VAT in Austria applies to a broad base and has minimal complexity for compliance and reporting.
  • There are no estate, inheritance, or wealth taxes.

Weaknesses

  • Headline corporate rate of 25 percent is above the OECD average (23.6 percent).
  • Corporations are limited in their ability to write off investments.
  • The tax wedge on labor is the 5th highest among OECD countries.

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