BCAUNTERNEHMENSBERATUNG
Law library / KStG

Austrian tax law

Corporate Income Tax Act (KStG)

The statute that taxes Austrian companies — who is liable, how income is measured, the participation exemption, the 23% rate and the minimum tax.

Körperschaftsteuergesetz 1988 (KStG 1988), BGBl. Nr. 401/1988, in der geltenden Fassung

8 selected sections · English side by side with the current German text · German text as of 30 October 2026 · translation edited by Alexander Baranov

For a GmbH, FlexCo or a foreign company managed from Austria, the KStG decides whether and how much tax is due. These sections cover unlimited and limited liability (seat or place of management), how taxable income is derived from the accounts, contributions and hidden distributions (including the EUR 50,000 shareholder clearing-account rule), the participation exemption for dividends and international holdings, non-deductible expenses (such as the EUR 500,000 cap on executive pay and the interest and royalty limitation), the 23% rate since 2024 and the quarterly minimum tax.

Each section below shows the English and the German side by side, paragraph by paragraph; the German text is copied from the official consolidated version (RIS) and our English is an unofficial working translation. Amounts are those in force for 2026; several thresholds are indexed annually.

In practice: Corporate structuring · Austrian holding company · Corporate income tax (guide).

Tax liability

§ 1Unlimited and limited tax liabilityUnbeschränkte und beschränkte Steuerpflicht§ 4Start and end of tax liabilityBeginn und Ende der Steuerpflicht

Determining income

§ 7Income and how it is determinedEinkommen, Einkommensermittlung§ 8Contributions, distributions and use of incomeEinlagen, Entnahmen und Einkommensverwendung§ 10Participation exemption and international holdingsBefreiung für Beteiligungserträge und internationale Schachtelbeteiligungen§ 12Non-deductible expensesNichtabzugsfähige Aufwendungen und Ausgaben

Rate, assessment & minimum tax

§ 22Tax rates (23%)Steuersätze§ 24Assessment and minimum corporate taxErhebung der Steuer
Unofficial translation, information only. Only the German text is legally binding. This is not legal advice. Selected provisions, not the complete Act.