Austria

Austria's Rankings
CategoryRankScore
Overall Rank1865.67
Corporate Taxes2156.69
Individual Taxes3245.06
Consumption Taxes1374.05
Property Taxes1464.78
Crossborder Taxes786.74

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

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