Austrian law stipulates that every payout made by ERSTE Foundation to third parties is subject to withholding tax (Kapitalertragsteuer, KESt). ERSTE Foundation is obliged to retain the tax amount and pay it to the Austrian Inland Revenue authority. For the funding amount not to be taxed twice (in Austria and in the project partner’s country of residence) the Republic of Austria has concluded double taxation treaties with a number of countries.
If the recipient of the funding amount is resident in a country that has concluded a double taxation treaty with Austria (see the list of countries in the side bar), the funding amount may not be subject to KESt or to a reduced rate of KESt, depending on the terms of the treaty.
In order to apply for tax treaty relief (i.e., exemption from KESt or application of a reduced KESt rate to the funding amount on the basis of a double taxation treaty) it is required to provide the Austrian Inland Revenue authority with the form Declaration by legal entities for the purpose of tax treaty relief at source (ZS-QU2). This form has to be filled and signed by the project partner. If the payout exceeds 10,000 euros the form must additionally be stamped and signed by the Inland Revenue office in the project partner’s country of residence.
Below you can download the form. In order to complete it properly, please follow the instructions. If you need additional assistance, please download the manual here at the end of the page. It contains frequently asked questions (FAQ) and a sample form that shows you how to complete the form correctly.
Here you can download the form.
Complete parts I, II, and III of the form and sign it. You can either complete the form on your computer and print it out OR print out the empty form and complete it handwritten. As the form has to bear your original signature it is not possible to save the completed form on a computer. We need the form in hard copy, with the required signature(s) on it.
This information refers to part II. c) of the form.
The form ZS-QU2 is valid one year from the date of the form, for the amount stated in the form. This means, during your project term you might have to provide more than one form ZS-QU2, depending on when the funding amounts are paid out.
If you are applying for more than 10,000 euros it is necessary that your Inland Revenue office confirm that you are resident (i.e., subject to taxation) in the country you have stated in section I of the form (your country of residence). This confirmation has to be given on the same paper form that you have completed and signed, under part IV, “Certificate of Residence from the tax administration of the country of residence”.
To help your Inland Revenue office understand what you ask them to confirm we have prepared a short explanatory text, which you can hand to your Inland Revenue office together with your signed form ZS-QU2. You find it in the manual that you can download at the end of the page.
Please return the original hard copy of the form ZS-QU2 in German/English language, which you – and your Inland Revenue office, if you apply for more than 10,000 euros – have signed. The Austrian tax authority will not accept any other form, or translations of the form. Please hand the original hard copy of the form to your project manager or send it to the office of ERSTE Foundation:
ERSTE Foundation will only be able to fully pay out funding to you if you provide the form Declaration by legal entities for the purpose of tax treaty relief at source (ZS-QU2) completed and signed as required.
Here you can download a manual, which we hope provides you with all the information you need to complete the form ZS-QU2 properly. The manual contains
• the form Declaration by legal entities for the purpose of tax treaty relief at source (ZS-QU2),
• frequently asked questions (FAQ),
• a sample form ZS-QU2 that shows you how to complete the form correctly,
• an information for the Inland Revenue office in your country of residence (the explanatory text regarding the required confirmation in part IV of the form).
If you have any questions please do not hesitate to contact your project manager! She or he will be happy to help you.