Since 2005, the corporate income tax rate for limited liability companies has been 25% regardless of whether the profits were distributed or accumulated. There are no other taxes on earnings of limited liability companies. The effective corporate tax burden is set on average at approx. 25% and is thus close to comparable values in the neighboring countries of Hungary, the Czech Republic, and Slovakia.
Dividend payments to parent companies headquartered in the EU are as a matter of principle subject to the terms of the parent-child guideline. As a result, no Austrian source tax is due on dividends in these cases.
The amount of the source tax on dividend payments made to shareholders who do not fall within the scope of the parent-subsidiary guidelines depends in most cases on the favoring terms of the applicable double taxation treaty but, because of domestic regulations, can never amount to more than 25% of the gross dividend.