Half-sentence method
The half- rate procedure is a procedure for reduced taxation of investment income in Austrian income tax law and in the tax law of individual cantons in Switzerland. As a result, the procedure is similar to the half-income procedure .
Regulation in Austria
The Austrian Income Tax Act (Section 37) provides tax breaks for residents. The latter are either subject to a withholding tax of 25% of their investment income (including inheritance tax) or can apply for such income to be taxed only at half the individual average tax rate (half-rate method). In contrast to the half-income method that applied in Germany up to and including 2008, it is not the dividend income that is halved in Austria, but the tax rate.
Regulation in Switzerland
In Switzerland, e.g. B. in the canton of St. Gallen, the half-sentence procedure is also used. From a minimum investment of 10%, the applicable tax rate is halved for the recipient of the investment income. From January 1, 2020, the change from the half-rate procedure to the partial taxation procedure is planned.
Individual evidence
- ↑ ESt guidelines - progression reductions §§ 37, 38 EStG .
- ↑ Half- sentence procedure ( Memento of the original from March 4, 2009 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. , Canton of St. Gallen.
