Austria-Business Environment

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Published: 06 Oct 2008 17:35:14 PST

Standards

Domestic framework and international association: The audit is compulsory for :
Banks, insurance companies and investment funds, all the AktienGesellschaft (AG Limited companies), GmbH (Limited Liability Company) or GmbH&Co Kg (limited partnerships) with a total of assets superior to 37 million Schillings, an annual turnover superior to 74 million Schillings and a workforce superior to 50 persons.
The external control of accounts must be confided to a body of experts (the approved auditors) recognized as such and chosen by the company.

Independence of justice: The judiciary is independent in Austria. Supreme Court is the highest court in the country.
Equal treatment of nationals and foreigners: Foreign nationals in Austria enjoy treatment at par with the natives from the country's judicial system, including the commercial disputes. Corruption is considerable low in the country. Austria is a member of the Council of Europe and its citizens have recourse to the European Court of Human Rights.
The language of justice: German which is accepted nationwide, although some of the states also have their own additional official languages.
Having recourse to an interpreter
Sources of the law and legal similarities: The Austrian laws are based on the constitution of 1920 (revised in 1929 and reinstated in1945); originating from Roman laws and judicial reviews of legislative acts by the Constitutional Court. Austria being a member of the European Union, the laws in the country need to comply with the conditions of the Community legislation. Austria accepts compulsory ICJ jurisdiction.

Domestic network and international agreements: The body responsible for the protection of intellectual property in Austria is the Österreichisches Patentamt.
Austria signed the Agreement of Paris concerning the protection of the industrial property and the agreement which establishes the World Intellectual property Organization (WIPO), as well as the Agreement of Munich, the Agreement of Madrid and the Patent Co-operation Treaty (PCT).

Type	Text	Date entered into law	Period of validity	Remarks
Patent	Patent Law	1996	20 years without prorogation if they are used within 3 years.

Tax rate: 20%
Reduced tax rate: 10 and 12%
The reduced rate of 10% applies to foodstuffs, agricultural products, rents, tourism and entertainment.
Exports and Banking transactions are exempted.
Other consumption taxes: Excise duties are also levied on certain products, especially on spirit.

>> To get further information on the VAT rates in Austria, please check the list of vat rates applied within the European Union, as well as the Ministry of Finances web site.

>> More detailed information on excise duties is available concerning alcoholic beverages, tobacco products, energy products on the European Commission website.

Tax rate for resident companies
Tax rate on long-term capital gains: The tax rate on long-term capital gains is 25%.
System governing groups of companies and dividends paid by subsidiaries to their parent companies: A withholding tax of 25% applies to the dividends paid to non-resident companies. Some exemptions exist within the context of international conventions.
Tax rate on branches: Branches are taxed at the rate of 25%.

Countries with whom a double taxation treaty have been signed: See the list of the convention signed on the website of the Ministry of Finance.

Tax year: The financial year begins on 1st January and ends on 31st December of each year.
Accounting standards: Austrian accounting is governed by the Commercial law.
The accounting rules respect the fourth and seventh European directives imposed by the accounting law
(Rechnungslegungsgesetz). The accounting law requires that all companies.
Accounting reports: According to their legal status, Austrian companies have to publish annually a profit and loss account, a balance sheet and an appendix.
Accountancy profession: The approved auditor (Wirschaftspruefer) and the fiscal councillors.
Certification and auditing: The audit is compulsory for:
Banks, insurance companies and investment funds, all the AktienGesellschaft (AG Limited companies), GmbH (Limited Liability Company) or GmbH&Co Kg (limited partnerships) with a total of assets superior to 37 million Schillings, an annual turnover superior to 74 million Schillings and a workforce superior to 50 persons.
The external control of accounts must be confided to a body of experts ( the approved auditors) recognized as such and chosen by the company.