DT2753 - Double Taxation Relief Manual: Guidance by country: Austria: Treaty Summary
The table summarises the provisions of the treaty in force. Where a percentage rate is shown, this rate is the ‘treaty rate’ and does not reflect taxes chargeable under the domestic law of either state before relief is given under the provisions of the treaty. The ‘treaty rate’ is the maximum rate at which the UK and Austria are permitted to tax income in the relevant categories under the treaty. Rates chargeable under the domestic law of either state may be higher or lower.
In all cases other conditions for relief (e.g. beneficial ownership) will have to be met before relief is due under the treaty. The text of the treaty itself should be consulted for the full details. The text of the treaty can be found on gov.uk.
| Subject | Comments | Article |
|---|---|---|
| Portfolio dividends | 15% | 10 |
| Dividends on direct investments | 5% (Notes 1 and 2) | 10 |
| Conditions for lower rate on dividends on direct investments | The beneficial owner must be a company which controls directly or indirectly 25% of the voting power of the payer | 10 |
| Property income dividends | 15% | 10 |
| Interest | 0% (Note 3) | 11 |
| Royalties | 0/10% (Note 4) | 12 |
| Government pensions | Taxable only in Austria unless the individual is an Austrian national without also being a UK national | 18 |
| Other pensions | Taxable only in the UK | 17 |
| Arbitration | No | N/A |
Note 1: Until 31 December 2020, the EC Parent-Subsidiary Directive has applied to Austria from 1 January 1995 (see INTM164030). This bars the imposition of withholding taxes on dividends paid by a company resident in one Member State of the Community to a company resident in another Member State, where the company receiving the dividends holds a minimum of 10% (from 1 January 2009) of the capital of the company paying the dividend. The level of control required to gain exemption was 25% until 31 December 2004, 20% until 31 December 2006 and 15% until 31 December 2008.
Note 2: The convention does not provide for credit relief for underlying tax (see INTM164010 (d)) and where appropriate unilateral relief for underlying tax should be given to a company in respect of dividends paid by an Austrian company (see INTM164360).
Note 3: The exemption shall not apply to interest on any form of debt-claim dealt in on a stock exchange where the beneficial owner of the interest:
- does not bear tax in respect thereof in the state of residence of the beneficial owner
- sells (or makes a contract to sell) the debt-claim from which such interest is derived within three months of the date on which such beneficial owner acquired such debt-claim
Note 4: Until the 31 December 2020, the EC Directive on Interest and Royalties (2003/49EC) provided for the abolition of source state taxation on interest and royalty payments made between associated companies in different Member States. It also ensures that the payments are subject to tax once in a Member State. It applies in the UK with effect from 1 January 2004.