The recent financial crisis has caused a serious economic recession in Austria. In an internationally-coordinated effort to counter the economic slump, the Austrian government enacted extensive fiscal packages as well as measures aimed at stabilisation of the banking sector. The fiscal packages...

The tax reform 2004-05 includes tax cuts within income taxation (€ –2.2 billion) and corporate taxation (€ –1.1 billion) as well as increases of several excise taxes (€ +232 million). It is realised in two steps: the first tax reform package, taking effect in 2004, was adopted by the...

One important element of the Austrian tax reform 2004-05 is the reduction of the corporate tax rate from 34 percent to 25 percent as of 2005. In cutting the corporate tax rate the government has reacted to the tax cuts implemented in a number of the accession countries in the run-up to the...