Austria: Solution Provided by Capital Consulting

AUSTRIA
Capital: Vienna
Population: 8,210,281 (July
2009 est.)
Language: German (official)
Currency: Euro
Time zone: GMT + 1 (+2 in
summer)
Electricity: 230V; 50 Hz
Cost of Living: Vienna ca. 4%
cheaper than
London (Mercer
Worldwide Survey)
Fiscal year: 1 January to 31
December
SOLUTION PROVIDED BY CAPITAL CONSULTING

Capital Consulting can provide a full range of payroll services in Austria. The individual is
employed by Capital Consulting and income is paid in the form of salary, allowances and
expenses, the proportions depending on individual circumstances.
Salary, Tax & Social Security

Capital Consulting deducts tax and social security at source on a PAYE basis and payments
are made to the relevant authorities on the employee’s behalf. The taxable amount may be
reduced by offsetting certain business expenses. There are different tax rates and bands
according to earnings level and marital/family status.
Capital Consulting will discuss your personal circumstances with you and help you to
minimise your tax and social security liabilities, within the bounds of Austrian
legislation.
Tax Returns
Income is managed tax efficiently, not just in Austria, but also in any other country where
there may be a liability. A tax return is filed each year in Austria with advice and assistance
from Capital Consulting, who will also provide help with filing tax returns elsewhere, if
required.
Tailor-made tax planning, worldwide
Capital Consulting, Rue du Château 23, CH-2034 Peseux, Switzerland

Tel : +41 (0)32 732 9700 fax : +41 (0)32 732 9701
www.capitaltaxconsulting.com
Latest information available as at 8 January 2010
GENERAL INFORMATION (2010)
Income tax
Tax Residents in Austria: are liable to pay Austrian tax on their worldwide income,
Non tax residents in Austria: are liable to pay tax on Austrian-source income only.
Individuals will be regarded as tax residents: if their habitual abode (deemed if they stay for
longer than 6 months) or their domicile (i.e. they permanently occupy a residence) in Austria.
Married persons file tax returns separately.
Taxable income includes:
- employment income including all remuneration in cash or in kind,

- benefits in kind.
Certain deductions are permissible including:
- employee social security contributions,

- expenses incurred in acquiring, securing and maintaining income,
- lump sum deduction for travel expenses if journey to work exceeds 20 km,
- lump sum deduction for special expenses like interest payments, life insurance
premiums and newly issued shares in resident companies under certain conditions,
- moving costs if seconded by the employer,
Allowances and tax credits for 2010 include:
- employment tax credit of EUR 54 per year and traffic tax credit of EUR 291,
- head of household tax credit of EUR 364 per year if spouse does not earn more than
EUR 2’200; the limit is increased if the couple has children,
- tax credit of EUR 700 per child per year, also applies to families who are exempt from
taxes,
- child allowance of EUR 220 per child per year, reducing the tax base, but only
applicable to taxpaying families,
- allowance for external child care costs up to EUR 2’300, applicable to taxpaying
families.
Income tax rates for 2010:
- 36.50% from EUR 11’000 up to EUR 25’000,

- 43.20% from EUR 25’000 up to EUR 60’000,
- 50.00% on the excess.

Tel : +41 (0)32 732 9700 fax : +41 (0)32 732 9701
Latest information available as at 8 January 2010
Social Security
Residents and non-residents working in Austria are required to pay social security
contributions on their gross salary in Austria or in the country of their employer after an E101
has been issued.
Social security rates for 2010:
o 23,36% for employers on up to EUR 4’020 monthly salary (special rules apply for
th th
specific payments like 13 and 14 salary):
3.00% for unemployment insurance,
3.83% for health insurance,
12.55% for pension insurance,
1.40% for accident insurance,
0.55% for insolvency insurance,
0.50% for a housing fund,
1.53% for the employees’ future fund.
o 18,07% for employees on up to EUR 4’020 monthly salary (special rules apply for
th th
specific payments like 13 and 14 salary):
3.00% for unemployment insurance,
3.82% for health insurance,
10.25% for pension insurance,
0.50% for a housing fund,
0.50% for many employees contribution for a chamber of employees.
Work permits and visas
Citizens of the EU/EEA Member States, including the new Member States, and Switzerland
are able to work without restriction in Austria.
Certain conditions that restrict the free movement of workers coming from Bulgaria or
Romania may be applied.
Citizens from all other countries need a residence permit and a work permit. In general, the
criteria to obtain these permits are very restrictive. There are some exceptions for highly
qualified people like researchers, but overall the process is lengthy and costly with no
guarantee of success.

Tel : +41 (0)32 732 9700 fax : +41 (0)32 732 9701

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AUSTRIA

SOLUTION PROVIDED BY CAPITAL CONSULTING

Salary, Tax & Social Security

Tailor-made tax planning, worldwide

Capital Consulting, Rue du Château 23, CH-2034 Peseux, Switzerland

GENERAL INFORMATION (2010)

Married persons file tax returns separately.

Taxable income includes:

- employment income including all remuneration in cash or in kind,

Certain deductions are permissible including:

- employee social security contributions,

Allowances and tax credits for 2010 include:

Income tax rates for 2010:

- 36.50% from EUR 11’000 up to EUR 25’000,

Tailor-made tax planning, worldwide

Capital Consulting, Rue du Château 23, CH-2034 Peseux, Switzerland

Social security rates for 2010:

Work permits and visas

Tailor-made tax planning, worldwide

Capital Consulting, Rue du Château 23, CH-2034 Peseux, Switzerland

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