Austria saw the results of the reduction of corporate tax

03.12.2012

Back in 2005, the Austrian government has reduced corporate tax rate from 34% to 25%. However, Australia makes the conclusions just now: Despite the low tax rate, according to Finance Minister Maria Fekter, tax revenues increased from 2005 to 2008. In 2005, this figure was EUR 5 billion, while in 2008 is already 6.3 billion euros.

This confirms the information that Austria is set relatively low corporate tax, much inferior to the average European level. Especially it relates to taxation of groups of companies.

It was also mentioned that the rate of income tax is very high (personal income is taxed at progressive rates of more than 50%), what is necessary to change. Ministers recognized the need to reduce income tax in Austria.

On the basis of: http://www.tax-news.com/news/Austrian_Company_Tax_Cut_Pays_Dividends____58594.html

Expert’s opinion

"Austria has been allocated among a number of other European jurisdictions for a long time. We never heard or seen her implicated in high-profile scandals with banks or complaining about their economic situation. However, at the moment, perhaps, it is in the Austrian banking secrecy remains exactly banking secret.

In terms of secret policy Austrian funds are interested as estate planning tool.

And from the point of view of obtaining a residence permit, Austria is a perfect instrument, as it provides the state program to obtain the possibility of living and learning.

And the steps that was taken with a view to the future to reduce the tax burden, bearing fruit. Not immediately, as expected, but the amount of income received was increased.

It remains only to once again draw attention to the country from the point of view of optimizing the income and from the point of view of living! "

Irina Lomakina ( Director of Moscow office “Honest&Bright”)