UK/Austria Taxation for Ltd companies

[gipsyair]

Good afternoon All,

I am writing to see if anyone has any experience with UK limited companies fulfilling contracts with Austrian companies? If you know a solicitor or accountant with that exact experience I would like to hear about them too.

My situation is going into a contract between my UK limited company and an Austrian GmbH. According to the Austrian company's accountant they will have to withhold 20% tax at source, which I can then offset against my UK corporation tax at the end of the year.

I have been led to believe there is a way in which it is possible to avoid the 20% being withheld, but I can't find any references. Basically what I am afraid will happen is that my corporation tax will end up in the region of 16%, that in theory then means I should be owed the remaining 4% withheld in Austria, but am I correct in thinking that I will never be able to reclaim that remaining 4% through HMRC UK?

It may be worth saying that the services offered are "Shipping and Air Transport" related. I have been able to find a paragraph in the UK/Austrian Income Tax Convention 1969, that says an individual operating an aircraft solely internationally "shall be exempt from paying any tax on capital in Austria". I just can't find the same reference for an enterprise/limited company..

Any insight, experiences or if you know someone that might be able to help would be greatly appreciated.

Best regards

Mike

[northernladyuk]

Good afternoon All,

I am writing to see if anyone has any experience with UK limited companies fulfilling contracts with Austrian companies? If you know a solicitor or accountant with that exact experience I would like to hear about them too.

My situation is going into a contract between my UK limited company and an Austrian GmbH. According to the Austrian company's accountant they will have to withhold 20% tax at source, which I can then offset against my UK corporation tax at the end of the year.

I have been led to believe there is a way in which it is possible to avoid the 20% being withheld, but I can't find any references. Basically what I am afraid will happen is that my corporation tax will end up in the region of 16%, that in theory then means I should be owed the remaining 4% withheld in Austria, but am I correct in thinking that I will never be able to reclaim that remaining 4% through HMRC UK?

It may be worth saying that the services offered are "Shipping and Air Transport" related. I have been able to find a paragraph in the UK/Austrian Income Tax Convention 1969, that says an individual operating an aircraft solely internationally "shall be exempt from paying any tax on capital in Austria". I just can't find the same reference for an enterprise/limited company..

Any insight, experiences or if you know someone that might be able to help would be greatly appreciated.

Best regards

Mike

Shipping and air? This is mainly an IT contractor site. Although I am curious.

[borderreiver]

I am writing to see if anyone has any experience with UK limited companies fulfilling contracts with Austrian companies?

I do, strictly B2B of course.

My situation is going into a contract between my UK limited company and an Austrian GmbH. According to the Austrian company's accountant they will have to withhold 20% tax at source, which I can then offset against my UK corporation tax at the end of the year.

Never heard of this, but I my UK Ltd is only active in the IT services sector. This must be something unique to your industry, but it strikes me as strange.

Best get advice from an independent Austrian accountant or the Austrian Chamber of Commerce I think.