Austria: Increase of Austrian withholding tax rate
On 7 July 2015, the Austrian Parliament approved the Tax Reform Act 2015/2016.
With effect from
1 January 2016
the Austrian withholding tax rates will be as shown below:
Type of Income | Previous WHT rate Austria - until 31 December 2015 | WHT rate Austria as of 1 January 2016 |
Interest/coupon payments for Non-Residents individual investors (outside EU as of 1 January 2015)1 | 0% | 27.5% |
Interest/coupon payments made by Austrian credit institutions to foreign credit institutions | 0% | 0% |
Dividends | 25% | 27.5% |
Income payments on participation certificates | 25% | 27.5% |
Note: The new withholding rates will be applicable for income paid for the fiscal year 2015.
Impact on customers
The new regulation will mainly result in an increased tax rate on dividend and income payments on participation certificates and foreign individual investors on debt securities that are resident outside the European Union. Interest payments made by Austrian credit institutions to foreign credit institutions have not been amended by the Austrian Tax Amendment Act and are still exempt from Austrian withholding tax.
Please note that Clearstream Banking is in discussion with the Austrian Tax Authorities, and depository, to conclude whether further Austrian sourced interest payments paid from Clearstream Banking’s depository will remain unaffected and therefore exempt from Austrian withholding tax. As was the case, which was stated in Announcement A15029, dated 06 February 2015.
Further Information
For further information, customers may contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or their Relationship Officer.
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1. Previously, interest income derived by foreign investors was not subject to limited tax liability in Austria and exempt from Austrian withholding tax.
2. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.