Double Tax Treaty Luxembourg – Austria

Luxembourg has signed numerous double taxation agreements (DTA) with various contracting states. By 2013, Luxembourg had 80 treaties for the avoidance of double taxation and tax evasion, which are concluded following the regulations of the Organisation for Economic Cooperation and Development (OECD) Model Tax Convention. Luxembourg has also signed an agreement for the avoidance of double taxation with Austria, which was amended in 2009. Our team of company formation representatives in Luxembourg can provide an in-depth presentation on the taxes applicable to Austrian citizens and companies operating in this country. 

 

 

Foreign businessmen who want to open a company in Luxembourg, as well as Austrian citizens who are currently taxed for various activities in Luxembourg, can benefit from the stipulations of the treaty. It is important to know that the treaty is applicable to similar taxes in both countries and that the differences in the taxes available under the treaty are an effect related to the national legislation of each contracting state and our team of consultants in company formation in Luxembourg may provide further information on this aspect.  

 

According to Article 4 of the treaty, Austria will impose the following taxes: 

 

• the income tax;

• the corporation tax;

• the capital tax;

• the contribution from income for the promotion of residential building and for the equalization of family burdens; 

• the director’s tax;

• the business tax;

• the land tax;

• the tax on agricultural enterprises and forest enterprises;

• the tax on undeveloped land;

• the substitute inheritance tax. 

 

 

At the same time, the Grand Duchy of Luxembourg will apply to Austrian citizens the following taxes:

 

• the income tax;

• the corporation tax;

• the specific tax on director’s fee;

• the capital tax;

• the business tax;

• the land tax. 

 

Foreign businessmen interested in company formation in Luxembourg should know that the current corporate tax applicable here is imposed at the rate of 29.22%. 

 

Businessmen who want to find out more information on the manner in which such taxes are imposed are invited to contact our team of company formation consultants in Luxembourg, who can offer tax advice and tax minimization strategies.