Taxation of interests
How are subordinated loans taxed in Austria?
With a traditional subordinated loan in Austria, there is generally no automatic tax deduction by the platform or the company.
This means:
- The paid interest or returns are subject to income tax
- Investors must declare the income themselves in their tax return
- There is no automatic withholding tax deduction
Typically, such income is taxed as part of the investor’s personal tax assessment.
Tip: If you have questions regarding your individual tax treatment, please contact your tax advisor.
What applies to (convertible) bonds, shares or participation certificates under ECSP?
For investments such as:
- convertible bonds
- bonds
- shares
- profit participation certificates
offered via an ECSP-compliant platform, different tax rules apply.
Austria (AT)
In Austria, these capital investments generally involve:
- an automatic tax deduction
- via capital gains tax (KESt)
The tax is withheld and paid automatically.
Germany (DE)
In Germany, an automatic tax deduction is also applied:
- through the so-called withholding tax (Abgeltungssteuer)
- typically directly by the custodian institution or platform
In many cases, investors do not need to separately declare these earnings unless special circumstances apply.
Tip: If you have questions regarding your individual tax treatment, please contact your tax advisor.Why are there differences between subordinated loans and securities?
The tax difference is based on the legal structure of the investment.
Subordinated loans
are often treated for tax purposes as:
- private loans
- contractual receivables
Therefore, there is often no automatic withholding tax deduction.
Securities such as shares or bonds
are typically subject to:
- capital market regulations
- custody account structures
- standardised tax procedures
As a result, taxes are automatically withheld.
Tip: If you have questions regarding your individual tax treatment, please contact your tax advisor.
How are vouchers treated for tax purposes?
Vouchers are generally treated for tax purposes like cash or cash-equivalent benefits.
This means:
- Vouchers may be taxable
- they are treated as if money had been paid directly
- the exact tax treatment depends on the specific use case
Do investors need to declare their earnings themselves?
| Investment type | Automatic tax deduction | Self-assessment required |
| Subordinated loans (AT) | No | Yes |
| Shares / bonds / participation certificates (AT) | Yes – KESt | Usually no |
| Shares / bonds / participation certificates (DE) | Yes – withholding tax | Usually no |
| Vouchers | Depends on the financial instrument | Possible |
Notice
The information provided is for general informational purposes only and does not constitute tax or legal advice. Tax treatment always depends on the individual circumstances and the applicable national regulations, which may change in the future. For a binding assessment, it is recommended to consult a tax advisor or qualified legal professional. CONDA is not authorised to provide tax or legal advice and assumes no liability for the completeness, accuracy or timeliness of the information provided.