Austrian withholding tax is currently based on two different tax regimes. As of 2015 a third tax regime will be introduced.
The tax regimes are:
- KESt: Kapitalertragsteuer Capital Income Tax
- EU-QuSt: Europäische Quellensteuer European withholding tax
- A-KeSt: Ausländer-KeSt Foreigner Capital Income Tax (from 2015)
A client can be liable for one or more tax regimes although only one will apply. To identify the liability the tax engine uses customer static data, but also declarations (signed forms). There are declarations available on client level and on account level which influence the tax liability and tax withdraw rules.
Austria does not report European Savings Tax Income to other countries. It withdraws EU-tax and pays the amount of tax anonymously to the European countries. Note that from 1.1.2018 (for calendar year 2017), this will change and Austria will switch to the information exchange basis and start reporting European Tax to other countries and will no longer withhold the tax.