COMPANY PROFILE

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SALZBURG CONFERENCE October 24 26, 2003
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COMPANY PROFILE

• Mag. Dr. Peter Werner
• CPA Tax Consulting Company Ltd.
• Intercons
• Auditing, Trust and Tax Consulting Company
  Ltd.
• Mag. Dr. Peter Werner
• Trust Company Ltd.

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Mag. Dr. Peter Werner CPA Tax Consulting
Company Ltd.

• 18 employees, inculding 1 CPA and 4 tax
  consultants
• Core activities Tax counselling, Financing,
  Book-keeping, payroll accounting
• Core fields Company law, foundation law,
  international tax law, financial aids and
  allowances, wood industry, associations
• Special know-how Counselling as to financing
  investments as well as counselling as to
  financial aids and allowances in the new German
  Federal Districts

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INTERCONS Auditing, Trust and Tax Consulting
Company Ltd.

• Core activities
• Auditing and feasibility studies, due diligence
  controls, foundation control

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Mag. Dr. Peter Werner Trust Company Ltd.

• Core activities
• Austrian Tax Consulting, Financing, Book-keeping,
  Payroll Accounting
• Counselling Core Fields
• Gastronomy and Tourism Companies

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Taxation in Austria

• General
• Income Tax
• Corporate Tax
• other Taxes
• Value Added Tax (VAT)

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Taxation in Austria - General

• Tax Liability all residents (individuals and
  companies) Austria
• Individuals Income Tax
• Business Organizations Corporate Tax
• no Trade Tax and no Net Wealth Tax
• unlimited limited tax liability
• Permanent Establishment
• Tax Assessment Tax Authorities

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INCOME TAX

• All individuals resident in Austria for more
  than 183 days
  are subject
• Owner of partnerships but not the partnership
  itself
• Progressive Tax rate
• 0 for the first 3.640
• 21 for the next 3.630
• 31 for the next 14.530
• 41 for the next 29.070
• 50 more than 50.870
• Special Allowances, Tax Credits

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INCOME TAX

• In Austria, the following types of income are
  subject to income taxation
• Income from agriculture and forestry
• Income from self-employment (laywers,
  architects,
• auditors, doctors etc.)
• Income from an enterprise engaged in trade or
  business
• Income from employment (salaries, wages)
• Investment income (dividends, interest)
• Rental income (real property, patents, licences,
  
• know-how)
• Other income (capital gains)

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INCOME TAX

• Loss Carryforward
• limited with 75 of the current taxable income
• unlimited carryforward
• Captial Gains from Sale of Property
• Withholding Taxes

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CORPORATE TAX

• Any corporation if it has seat or (principal)
  place of management within Austria
• On undistributed Profits
• 34 (flat rate)
• On distributed Profits (Dividends)
• 25 witholding Tax additional
• Minimum Corporate Tax
• 1.750 for Ltd.
• 3.500 for Stock Corporation
• Consolidated Returns

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CORPORATE TAX

• Exemption for Participation Gains
• Domestic
• Foreign
• Min. 10 of shares
• At least one year
• Depreciation of Financial Assets
• actual legal position
• Ex 2004

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OTHER TAXES

• Real Estate Tax
• Land Transfer Tax (GrESt)
• Inheritance and Gift Tax
• Capital Transfer Tax
• Stamp Duties
• Tax on Interest/Dividends earned (KESt)
• BUT NO property tax!

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VAT

• Tax liable
• Delivery of goods
• Rendering of services
• if performed in Austria (power of disposal!)
• Tax rates
• 20 (normal)
• 10 (basic foods, printed material such as
  books, newspapers)
• 0 real false tax free