Archive article on the Corona pandemic. The political proposals discussed at the time are not a statement on the current legal situation.

A wealth tax is on its way in Austria, making asset protection and wealth advisory more in demand than ever.

The current coronavirus pandemic is testing not only our human endurance but above all our economic resilience. The economy is suffering from the measures adopted by governments, which in turn causes high costs for the state.

It is obvious that the costs will have to be distributed among taxpayers. The first proposals for solutions are already coming from many sides. The NGO (non-governmental organisation) Attac, which campaigns for a democratic and socially just organisation of the global economy, recently published its first proposals for distributing the enormous economic costs.

Attac would, for example, like to distribute the costs caused by the coronavirus by means of a wealth tax ("tax on the rich") and a one-off burden-sharing levy.

Millionaires would thus have to hand over up to 60% of their assets to Austria in order to support the state with funds. The amount the wealthy would have to pay depends on their assets, with business assets treated separately in order to protect jobs.

The following scale was proposed:

The one-off burden-sharing levy could be paid in 5 annual instalments.

So far, the Austrian federal government has invested around EUR 38 billion to rescue the economy. According to Attac's calculations, Austria would receive around EUR 70 to 80 billion in additional revenue from the wealth tax.

So far, this idea has not become reality in any EU country. However, Attac Austria hopes for an international or EU-wide introduction of this kind of burden-sharing and wants to act as a role model with a first introduction in Austria. As "role models", the NGO presents the German burden-sharing of 1949, in which a 50% levy was imposed on assets held in 1948. Japan, too, is said to have introduced a special levy of 90% on the largest fortunes after the Second World War.

Austrian politicians have reacted very differently to this proposal. Vice-Chancellor Werner Kogler (Greens), for example, calls for an inheritance and gift tax for "fair crisis financing".

SPÖ leader Pamela Rendi-Wagner clearly supports a millionaires' tax and also a levy on internet and online corporations, which so far pay virtually no taxes. The banks should also make their contribution.

The KPÖ Styria calls for a corona solidarity tax on assets over EUR 3 million. This corresponds to around 2% of the Austrian population.

Since Austria already has a very high tax and levy ratio, any further taxation, of whatever kind and regardless of its name, would probably be serious. Last year, the so-called "Tax Freedom Day" was 5 August. Tax Freedom Day is the day from which taxpayers can freely dispose of their income. Accordingly, Austrians work more than half the year for the state.

We will gladly help you protect your assets against future, possibly unfair wealth taxes. Thanks to our international expertise from Liechtenstein and Switzerland, we offer you tailor-made solutions for asset protection and wealth advisory.