In July 2015 the Austrian Parliament approved the Tax Reform Act 2015/2016 and this includes a provision to increase the rate of withholding tax applicable for dividend distributions made to non-resident companies. The law provides that with effect from 1 January 2016 the withholding tax (WHT) applicable to dividend distributions to non-resident companies will increase to 27.5% (increased from the current rate of 25%).
However the 25% rate of withholding tax would continue to apply to general bank and savings accounts. It appears that the 25% rate would also continue to apply with respect to capital income realized on the sale of shares, distributions from private foundations and profits from derivatives.
