Austria

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Business Environment

Business Practices

General information: Kwintessential cross cultural solutions
Country Commercial Guide- Austria
Opening hours and days: Shopping hours:Shops and stores are generally open from Mon-Fri 0800-1800 (with a one- or two-hour lunch break in smaller towns) and Sat 1200-1700. Big stores and shops in tourist resorts now open Mon-Fri 0800-2100 and Sat/Sun 0800-1800.
Business and Office hours: Mon-Fri 0800-1230 and 1330-1730.
Banking Hours: Mon, Tues, Wed and Fri 0800-1230 and 1330-1500; Thurs 0800-1230 and 1330-1730. Different opening hours may be kept in the various federal provinces

Public holidays

New Year's Day	January 1, Tuesday
Epiphany	January 6, Sunday
Easter Monday	March 24, Monday
Labor Day	May 1, Thursday
Corpus Christi Day	May 22, Thursday
Assumption Day	August 15, Friday
National Day	October 26, Sunday
All Saints Day	November 1, Saturday
Immaculate Conception	December 8, Monday
Christmas Day	December 25, Thursday
St. Stephen's Day	December 26, Friday

Periods when companies usually close

The vacation season is in Austria is July and August. During this period many decision-makers are on vacation, generally for 3-4 weeks. Thus business visits or events are not recommended during these two months.

Accounting Rules

Tax year: The financial year begins on 1st January and ends on 31st December of each year.
Accounting standards: Most of the companies are using IFRS, with only a few are now using US GAAP or the Austrian code.
In fact from 2005, it has become mandatory for all listed European companies, including Austrian companies, to use IFRS.
Accounting regulation bodies: Institut Osterreichischer Wirtschaftsprufer
Accounting reports: The accountancy system in Austria is regulated by the Bilanzbuchhaltungsgesetz 2006 (BibuG - Management Accountancy Law).
Publication requirements: According to their legal status, Austrian companies have to publish annually a profit and loss account, a balance sheet and an appendix.
Professional accountancy bodies: Paritaetische Kommission Bilanzbuchhaltungsberufe – PK
KWT, Kammer der Wirtschaftstreuhaender
WKO, Wirtschaftskammer Oesterreich
Marketing platform of Austrian accountants
BOEB
Certification and auditing: Supervisory body (Paritaetische Kommission Bilanzbuchhaltungsberufe – PK

Chamber of Public Accountants (Kammer der Wirtschaftstreuhaender -KWT)
Accounting news: Accounting news on Central Europe by einnews.com

Tax Rates

Consumption taxes

Nature of the tax: Value Added Tax (VAT)
Tax rate: 20%
Reduced tax rate: 10% on foodstuffs, agricultural products, rents, tourist services, public utilities (except electricity) and entertainment.
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.
Besides other taxes like municipality tax, real-estate tax, gift tax, stamp duty, road toll tax, etc. are also applied.

Corporate taxes

Company tax: EUR 1,092 for a limited liability company and a join-stock company in its 1st year of operation. In the 2nd year, it increases to EUR 1,750 for a limited liability company and EUR 3,500 for a joint-stock company.
Tax rate for foreign companies: A company is considered resident if its effective management is in Austria or if it is incorporated in Austria.
A resident company is taxed on worldwide income, while as a non-resident company is taxed only on Austrian-source income.
Capital gains taxation: Generally charged at 25%.
Main allowable deductions and tax credit: All normal operating expenses as well as extra-ordinary expenses are allowed as deductions against gross income. Special expenses like contributions to social insurance, public relief funds, medical & health insurance, occupational pension funds are also deductible.
Other corporate taxes: Stamp duty, license fees, registration charges, etc.

Individual taxes

Tax rate

Individual tax rate	Applicable tax schedule for one person only, for the incomes of 2008
from 0 EUR to 3,640 EUR	0%
from 3,641 EUR to 7,270 EUR	21%
from 7,271 EUR to 21,800 EUR	31%
from 21,801 to 50,870 EUR	41%
beyond 50,870 EUR	50%

Allowable deductions and tax credit: Deductions include expenses incurred towards: insurance premium, purchase of a house or home improvements, retirement savings, work related expenses (like keeping an accommodation close to the workplace, professional use of home computer or internet or car or mobile phone), etc. Generally it is possible to take a flat rate deduction for such expenses.
Automatic tax credits are given based on the number of income earning individuals in a household and whether there are children.
Special expatriate tax regime: There is no special expatriate tax regime in Austria. However the country’s tax authorities do accept a number of deductions on account of additional cost of living incurred by expatriates.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: See the list of the conventions signed on the website of the Ministry of Finance.
Whithholding taxes: Withholding tax rates are 25% for dividends, 25% for interest and 20% for royalties.

Sources of fiscal information

Tax Authorities: Federal Ministry of Finance
Other domestic resources: Taxes in Austria as described by ABA (Invest in Austria)

Intellectual Property

National organizations: The body responsible for the protection of intellectual property in Austrian Patent Office.
Regional organizations: European Patent Office (EPO)
International membership: Member of the WIPO
Signatory to the Paris Convention for the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)

National regulation and international agreements

Type of property and law	Validity	International agreements signed
Patent Patent Law (Federal Law No. 259/1970), last amended in 2001.	20 years (maximum).	Patent Cooperation Treaty (PCT) Strasbourg agreement concerning the International Patent Classification
Trademark Trademark Protection Law (Federal Law No. 260/1970), last amended by in 1999.	10 years (extendible).	Trademark law treaty Nice agreement Protocol relating to the Madrid Agreement
Design Semiconductor Protection Right Law 1988 (Federal Law No. 372/88 on the Protection of Topographies of Microelectronic Semiconductor Products), last amended in 1996.	10 years (maximum)
Copyright Federal Act on Copyright in Works of Literature and Act on Related Rights, April 1936, last amendment in 1998.	Generally 70 years after the death of the author of the work.	Berne convention Convention for the Protection of Producers of Phonograms against unauthorized duplication of their phonograms Rome convention for the protection of performers, producers of phonograms and Broadcasting organizations WIPO copyright treaty WIPO performances and Phonograms treaty
Industrial Models Designs Law (Federal Law No. 497/1990, June 1990), last amended in 1992.	5 years ( extendible up to 25 years after every 5 years).

Legal Framework

Independence of justice: The judiciary is independent in Austria.
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.
The language of justice: The judicial language is German which is accepted nationwide, although some of the states also have their own additional official languages.
Recourse to an interpreter: Possible
Sources of the law and legal similarities: The Austrian laws are based on the constitution of 1920 (revised in 1929 and reinstated in 1945); 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.
Checking national laws online: Legal Information System of the Republic of Austria (RIS)

Standards

National standards organizations: Austrian Bureau of Standards
Austrian Electrotechnical Committee
Integration in the international standards network: Member of International Organization for Standardisation

Member of International Communication Union

Member of IEC

Member of CEN (European Committee for standardization)
Classification of standards: Austrian Standards Plus ( AS+)
Online consultation of standards: Visit the Austrian Bureau of Standards
Certification organizations: Austrian Testing Organization (TueV Oesterreich)

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