{"id":375,"date":"2023-05-17T07:01:25","date_gmt":"2023-05-17T07:01:25","guid":{"rendered":"https:\/\/companyformationaustria.com\/?p=375"},"modified":"2023-09-06T14:05:23","modified_gmt":"2023-09-06T14:05:23","slug":"payroll-in-austria","status":"publish","type":"post","link":"https:\/\/companyformationaustria.com\/payroll-in-austria\/","title":{"rendered":"Payroll in Austria"},"content":{"rendered":"\n<p><strong>Payroll in Austria<\/strong>&nbsp;is a tax imposed on the municipal level to which the employer is subject to. This is just one of the taxes payable by companies in the country and, in many cases, business owners will choose to outsource the management of payroll (the tax, as well as the salary payments made to the employees).<\/p>\n\n\n\n<p>If you are looking&nbsp;<strong>payroll services in Austria<\/strong>, our team can assist you as part of our comprehensive packages for companies of all sizes.<\/p>\n\n\n\n<p>You can find our more information about payroll and taxation below and, as needed, you can reach out to our&nbsp;<a href=\"https:\/\/www.companyformationaustria.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>company formation Austria<\/strong><\/a>&nbsp;team for more details about specific matters, either related to taxation or to company creation in general.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/companyformationaustria.com\/payroll-in-austria\/#the-tax-on-payroll-in-austria\" title=\"The tax on payroll in Austria\">The tax on payroll in Austria<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/companyformationaustria.com\/payroll-in-austria\/#corporate-taxation-in-austria\" title=\"Corporate taxation in Austria\">Corporate taxation in Austria<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/companyformationaustria.com\/payroll-in-austria\/#individual-taxation-in-austria\" title=\"Individual taxation in Austria\">Individual taxation in Austria<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"the-tax-on-payroll-in-austria\"><\/span><strong>The tax on payroll in Austria<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The employer in Austria is liable to a series of taxes, both the corporate income tax and other business-related taxes, as well as those taxes that are applicable due to the fact that the business hires employees.<\/p>\n\n\n\n<p>As far as payroll is concerned, the following apply:<\/p>\n\n\n\n<ul>\n<li>The payroll tax is levied by the municipality in which the business activates;<\/li>\n\n\n\n<li>It has a usual rate of 3% of the monthly gross salaries\/wages paid by the company which has a permanent establishment in the country;<\/li>\n\n\n\n<li>Other payroll-related taxes can also apply and these can range between 5.77% and 5.85%;<\/li>\n\n\n\n<li>Companies that request&nbsp;<strong>payroll services in Austria<\/strong>&nbsp;will receive them as part of their package, such as the ones offered by our local team of tax specialists.<\/li>\n<\/ul>\n\n\n\n<p>When working with a&nbsp;<strong>payroll provider in Austria<\/strong>, such as the services offered by our local team of experts, you can make sure that the payroll tax is paid as part of the general package overseeing the filing and payment of corporate taxes.<\/p>\n\n\n\n<p>Investors looking for complete services to\u00a0<strong><a href=\"https:\/\/www.companyformationaustria.com\" target=\"_blank\" rel=\"noreferrer noopener\">op<\/a><\/strong><a href=\"https:\/\/www.companyformationaustria.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>en a company in Austria<\/strong><\/a>\u00a0can rely on our local team of experts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"corporate-taxation-in-austria\"><\/span><strong>Corporate taxation in Austria<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The tax on<strong>&nbsp;payroll in Austria&nbsp;<\/strong>is only one of the taxes imposed on businesses. Our team summarizes the basis of taxation for companies below:<\/p>\n\n\n\n<ul>\n<li>a company registered in Austria is subject to tax on its whole domestic and foreign income; non-Austrian companies are only subject on their income derived from the country;<\/li>\n\n\n\n<li>the standard corporate income tax rate is subject to a reduction according to the Eco-social tax reform act, from 25% to 24% for the calendar year 2023, with a further reduction following for 2024;<\/li>\n\n\n\n<li>both employers and employees are subject to social security contributions to varying degrees; these are made for the following categories: sickness, unemployment, pension, accident, and miscellaneous.<\/li>\n<\/ul>\n\n\n\n<p>As far as the sickness contributions are concerned, the contribution percentages are 3.78% for the employer, and 3.87% for the employee, up to a total of 7.65%. The pension contribution is the highest, at 12.55% for the employer and 10.25% for the employee.<\/p>\n\n\n\n<p>You can find out detailed information about these types of contributions, as well as access&nbsp;<strong>payroll services in Austria<\/strong>, if you reach out to our team before or after incorporating your business, as well as before or after you have hired employees.<\/p>\n\n\n\n<p>In addition to being a&nbsp;<strong>payroll provider in Austria<\/strong>, our team offers complete bookkeeping and accounting services for companies of all sizes, irrespective of the business field in which they activate. Please feel free to reach out to our team for complete details on our services and packages, as well as for complete information about all of the taxes a company is subject to in Austria.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"individual-taxation-in-austria\"><\/span><strong>Individual taxation in Austria<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While the municipal tax on&nbsp;<strong>payroll in Austria<\/strong>&nbsp;is a tax falling on the employers, individual taxation is a matter that concerns the employee (either an Austrian citizen or a foreign national living and working in the country based on temporary or permanent residency).<\/p>\n\n\n\n<p>You can find a brief summary of the individual tax rates applicable in Austria on the individual&#8217;s worldwide income below:<\/p>\n\n\n\n<ul>\n<li>0% of the income for an annual amount of up to EUR 11,000;<\/li>\n\n\n\n<li>20% of the income value for annual amounts between EUR 11,001 and EUR 18,000;<\/li>\n\n\n\n<li>30% of the income value when the yearly amount is between EUR 18,001 and EUR 31,000.<\/li>\n<\/ul>\n\n\n\n<p>Three more progressive tax rates apply, to a maximum of 55% of the income value in case of income over EUR 1 million.<\/p>\n\n\n\n<p>Generally, individual income tax is withheld from salaries, interest, and dividends. Income tax on other types of income is subject to quarterly payments. Individuals follow a tax year that is the same as the calendar year and file income tax returns (as needed) with the local tax office after the end of the calendar year.<\/p>\n\n\n\n<p>Understanding the basis for taxation is an important step for doing business in Austria, as well as for individuals who wish to start their own business as a sole trader or enter into an employment agreement with an Austrian employer.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.companyformationaustria.com\/contact#jmp\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Contact our team<\/strong><\/a>&nbsp;specializing in&nbsp;<strong>company incorporation in Austria<\/strong>&nbsp;for more information about business creation, taxes, as well as other business and commercial matters.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Payroll in Austria&nbsp;is a tax imposed on the municipal level to which the employer is subject to. This is just one of the taxes payable by companies in the country and, in many cases, business owners will choose to outsource the management of payroll (the tax, as well as the salary payments made to the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":376,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[207,45,9,204,205,206],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Payroll in Austria \u2013 Rates and Requirements<\/title>\n<meta name=\"description\" content=\"Payroll in Austria is a tax imposed on a municipal level, as a percentage of the monthly salary\/wages of the employee. 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