Depreciation depends on ‘useful life’ and is
based on either the cost of acquisition or In Austria, the straight-line method of the cost of production. depreciation is allowed by tax regulations.
Special forms of depreciation without proof of ‘useful life’
|Buildings to be rented to others for residential purposes||1.5%|
|Buildings, at least 80 % of which are used for agriculture or forestry or for conducting business or trade||3%|
|Banks and insurance companies||25%|
|Banks and insurance companies, if at least 80 % of the premises are used to serve customers||3%|
|For other business premises||2.5%|
|Investments in the interests of preserving monuments
The acquisition costs of goodwill: the useful age of an agricultural or forestry enterprise or a trade or business is 15 years
|Passenger cars, other than driving school vehicles and motor vehicles serving at least 80% of commercial passenger transport||12.5%|
|Machinery, office equipment||10-20%|
Intercompany charges such as management fees, rentals and royalties charged by a foreign parent to its Austrian subsidiary will be recognised as deductible expenses to the extent that they satisfy the arm’s length principles. Intercompany charges which do not meet the arm’s length criteria are treated as hidden profit distributions and are subject to corporation and withholding taxation.