Municipal tax return
table of content
The municipal tax return must be sent via FinanzOnline at the end of the calendar year, by 31 March of the following year at the latest. The entrepreneur must calculate the municipal tax for each calendar month themselves and pay the entitled municipality by the 15th day of the following month.
In general, these rules also apply to entrepreneurs from EU Member States in Austria.
The tax is due at the end of the calendar month in which
- wage payments are made to employees (payments to freelancers and shareholder-directors),
- recruitment fees are paid to foreign staff leasing agencies or
- salaries paid to a public body have been reimbursed.
In addition, the entrepreneur must submit an annual tax return to the competent municipality relating to the basis of calculation at the end of each calendar year, by 31 March of the following year at the latest. Should business operations cease at a sole establishment in a municipality, the tax return must be submitted within one month of the closure of the operating facility.
If the self-assessed calculation by the entrepreneur does not prove to be correct, or if the self-assessed municipal tax is not paid, or not paid in full, the municipality will issue a municipal tax notice. Such a notice shall not be issued if the taxable party subsequently corrects the self-assessment.
The affected companies are those which pay a salary to employees at permanent business establishments located within Austria.
These employees include:
- persons who are in an employment relationship subject to wage tax
- shareholder-directors holding a major interest
- persons allocated for service by a public body
Entrepreneurs within the meaning of the Kommunalsteuergesetz are those who independently carry out commercial or professional activity. Public bodies are only commercially or professionally active in the context of their commercial operations and their agricultural and forestry operations. Anyone else qualifying as an entrepreneur is governed by Section 3 of the Kommunalsteuergesetz 1993.
See General Information
- Payment of municipal tax: by the 15th day of the following month
If salaries for the previous year are paid out after 15 January up to the 15 February, the municipal tax is to be paid by 15 February of the following year.
- Municipal tax declaration: by 31 March of the following year; upon closure of a business establishment, within one month of closure.
- The local authorityGerman text for the area in which the business establishment is located
- In chartered urban districts: the municipal executiveGerman text for the area in which the business establishment is located
- in Vienna:
- Account-keeping unit: Accounting Department/Accounting and Taxes (Municipal Department 6)
- Contact for legal questions: Accounting and Taxes (Municipal Department 6)
No form needs to be submitted when paying the municipal tax by the 15th day of the following month.
Municipal tax return
The tax return must be submitted electronically via FinanzOnline. In this case, an entrepreneur with business establishments in more than one municipality needs to submit only one municipal tax return.
If it is infeasible for the entrepreneur to submit electronically due to technological issues, the tax return must be sent to the municipality using an official form. The municipalities must send data from the tax returns relating to the respective tax bases payable to them to the Federal Tax Authorities via FinanzOnline. This tax return must also include, on an annual basis, the total tax base payable by the company split between the municipalities concerned (division into months is not necessary). In this case, an entrepreneur with business establishments in more than one municipality must send the same official form to each municipality.
Should a sole business establishment in a municipality be closed, the tax return must be submitted within one month of the closure; this deadline is not relevant if the company still has one or more business establishments in this municipality.
No specific documents are required.
Costs and fees
No fees or charges are payable.
Kommunalsteuergesetz 1993 (KommStG 1993)
Link to form
- Municipal tax declaration (KommSt 1)German text
- Municipal tax – tax bases for all business establishment municipalities in Federal territory (KommSt 1a)German text
- Municipal tax declaration in the event of the closure the sole business establishment (KommSt 2)German text
- FinanzOnline (→ BMF)German text
Traders registered on the Unternehmensserviceportal (USP) are able to use this and many other online procedures with a single sign-on to the USP. More detailed information about registering with the USP can be obtained from the online advisor for USP registrationGerman text.
Responsible for the content: Federal Ministry of Finance