Austria’s National Assembly has approved a new wide-ranging tax reform programme proposed by the government for the fiscal year 2015-2016.
The reforms will allow the Federal Ministry of Finance powers to set up a new central register of all bank accounts. Austrian banks will have to provide information for any domestic and international bank customers as requested by the tax authorities. Tax offices performing an audit will get access to all of the taxpayer’s accounts, though they will have to obtain a court order before consulting the central register of accounts. Most of the changes will take effect from the start of 2016, however some rules will come into force this year.
Also on the agenda:
The bracket for the 50% rate of income tax will be increased by €30,000 a year.
Withholding tax on capital income will increase by 2.5%.
The flat-rate capital gains tax on private sales of immovable property will see a 5% increase.
A new 55% level of income tax for any yearly taxable income above €1 million.