2010 Eur. Tax Stud. 1 (2010)

handle is hein.journals/eurotaxs2 and id is 1 raw text is: European Tax Studies

Income Tax Treatment of Corporate Finance in Austria
Eva Eberhartinger and Matthias Petutschnig1
1.   Introduction
The current legal basis of income tax on individuals, including partners from
partnerships, in Austria is the Einkommensteuergesetz (EStG) (individual
income tax act) enacted in 1988. Income tax of corporations is based on
the Korperschaftsteuergesetz (KStG) (corporate income tax act) enacted
also in 1988. The EStG is primarily applicable to individuals but as the KStG
often refers to the regulations of the EStG the individual income tax act is
also highly relevant for corporate taxpayers. Corporations that either have
their seat or their place of management in Austria are subject to unlimited
corporate income taxation and are taxed on their worldwide income. The
statutory tax rate for corporations is 25%.2 Austria applies a shareholder-
relief-system on dividends distributed to individual shareholders with a 25%
capital yield tax withheld by the distributing corporation.      Dividends
distributed to corporate shareholders are exempt from tax at the parent's
level.4 However in certain situations5 (shareholding of less than 25%   or
indirect shareholding for a domestic parent; shareholding of less than 10%
for a foreign parent) the distributing corporation is obliged to withhold 25%
capital yield tax that will then be credited to the shareholder's overall
corporate income tax liability or will be refunded.6
1 Prof. Dr Eva Eberhartinger, LLM is full professor and head of the Tax Management Group of
the Department of Finance, Accounting and Statistics of WU - Vienna University of Economics
and Business and Vice-Rector for Finance of WU.
Matthias Petutschnig is research and teaching associate at Tax Management Group of the
Department of Finance, Accounting and Statistics of WU - Vienna University of Economics
and Business.
2  22(1) KStG.
3  93 et seq EStG.
4  10 KStG.
5  94 EStG and  94a EStG.
6  94 and 94a EStG.
@ Copyright Seast - All rights reserved


What Is HeinOnline?

HeinOnline is a subscription-based resource containing nearly 2,700 academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.

Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline with pricing starting as low as $29.95

Access to this content requires a subscription. Please visit the following page to request a quote or trial:

Already a HeinOnline Subscriber?