Look at tax rates, the latest tax news and information on double taxation agreements with our specialized online resources, guides and useful links. Despite the countries in which Directive 883/2004 is applicable (EU, European Economic Area (EEA) and Switzerland), Austria has totalisation agreements with the following countries: Austria has entered into DTTs with all major trading countries. Some of the treaties provide for the abolition or partial abolition of double taxation through foreign tax credits (for example. B Canada, Japan, United Kingdom, United States). However, in most cases, double taxation is avoided or partially avoided by a progression exemption clause. Exceptionally, dividends and interest are normally fully taxable with a foreign tax credit. (b) the competent authorities are not in a position to reach, within two years of the referral of the competent authority of the other contracting State, to an agreement on the solution of this case, the timetable of the order containing a convention and protocol («arrangements») between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Austria on the prevention of double taxation and the prevention of tax fraud and evasion. With the Order, the arrangements are put into effect. For businesses, with the entry into force of Brexit, the provisions of the parent-subsidiary directive will also be defined by the Interest Rates and Royalties Directive and the Merger Directive with regard to the United Kingdom: for Austrian companies with affiliates in the United Kingdom and for British companies with subsidiaries in Austria, this relates to the exemption from withholding tax on dividends. 94 II of the Austrian Income Tax Act of 1988 and the exemption from withholding tax for post-interest and royalty payments. 99a of the Austrian Income Tax Act of 1988.
With regard to dividends, interest and royalties, similar provisions are contained in the new double taxation agreement between Austria and the United Kingdom, which will apply from 1 January 2020, as for Austrian taxes.