What is the municipal tax?
The municipal tax is a wage-dependent municipal tax and is subject to the Municipal Tax Act (KommStG)
Who has to pay municipal tax?
- Entrepreneurs who employ people in Austria must pay municipal tax for their employees if they earn more than 1,095 euros gross.
- An entrepreneur is someone who carries out a commercial or professional activity on a self-employed basis.
- "Commercial or professional" means that you intend to generate income. Whether you intend to make a profit or not does not matter in this case.
- Entrepreneurs can be both natural persons and legal entities. This includes all types of companies (GmbH, OG, KG, foundations, co-partnerships, other partnerships, corporations according to § 7 Abs. 3 KStG, etc.)
Who is considered an employee?
- Persons who are in an employment relationship(§ 47 para. 2 EStG)
- Persons who hold shares in corporations(§ 22 Z 2 EStG)
Do I have to register for municipal tax?
If you are liable for municipal tax, you must register your company for municipal tax once using the online form. The registration takes place at Service Unit Municipal taxes - assessment - Local tax
Do I have to report my municipal tax annually?
Yes, there is a reporting obligation. You will not receive an advance notice, but must pay the municipal tax yourself by the 15th of the following month.
By March 30 of the following year, you must also submit a municipal tax return with the total amount for the year. You submit the declarations directly to the tax office.
Forms
How much is the municipal tax?
The municipal tax is 3% of the gross wages. You must calculate the tax yourself and pay it by the 15th of the following month.
Who is responsible for the municipal tax?
- The Service Unit Municipal taxes - assessment - Local tax.. is responsible if you want to register your company for municipal tax.
- The Lade Service Unit Municipal taxes - audit - Municipal tax audit.. is responsible for the municipal tax audit. The experts can also inspect books and documents.
- The municipal tax returns themselves are submitted directly to the tax office.