Austria
| Category | Rank | Score |
|---|---|---|
| Overall Rank | 18 | 65.67 |
| Corporate Taxes | 21 | 56.69 |
| Individual Taxes | 32 | 45.06 |
| Consumption Taxes | 13 | 74.05 |
| Property Taxes | 14 | 64.78 |
| Crossborder Taxes | 7 | 86.74 |
Austria ranks 18th overall on the 2021 International Tax Competitiveness Index, two places worse than in 2020.
Strengths
- Austria's international tax system is relatively competitive as it is fully territorial without any country limitations, has a broad tax treaty network of 89 countries, and Controlled Foreign Corporation rules that only apply to subsidiaries that do not have substantial economic activity.
- The VAT in Austria applies to a broad base and has better-than-average complexity for compliance and reporting.
- There are no estate, inheritance, or wealth taxes.
Weaknesses
- The headline corporate rate of 25 percent is slightly above the OECD average (22.9 percent).
- Austria implemented a digital services tax (DST) in 2020.
- The tax wedge on labor is the 3rd highest among OECD countries.
Learn more about the tax system in Austria