Foundation entry tax (Austria)
Stiftungseingangssteuer
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Austrian tax on contributions to a private foundation, generally 2.5 percent of the assets contributed.
Higher rates apply in certain cases, for example where there is a lack of transparency towards the authorities. For real estate, an amount equivalent to real estate transfer tax is added.
In practice
The foundation entry tax is due on every contribution to a private foundation, not only when it is established. In practice, the valuation, timing and form of each contribution are documented; different rates apply to certain assets and situations, for example a higher rate where the foundation documents are not disclosed. Anyone planning contributions should therefore coordinate them early with the tax adviser and keep the evidence in the foundation's file.
Distinctions and common mistakes
For contributions to private foundations, the foundation entry tax applies instead of the gift notification; the taxpayer is generally the foundation, and the tax is self-assessed and paid. A typical mistake is to treat contributions to foreign foundations like domestic ones, although a higher rate of 25 percent can apply where the foundation is not comparable or there is no exchange of information.
Relevant in: Austria
Related terms
- Private foundation (Austria)
- Austrian legal form under the Private Foundations Act for permanently dedicating assets to a purpose set by the founder.
- Interim tax (Austria)
- Tax on certain investment income of an Austrian private foundation at the corporate income tax rate, credited when the foundation later makes distributions.