Doing Business 2018 Austria Economy Pro le of Austria Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Austria Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Region OECD high income DB 2018 Rank 190 1 Austria Income Category High income 22 Population 8,747,358 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 45,230 0 100 78.54 City Covered Vienna DB 2018 Distance to Frontier (DTF) 0 100 79.00: Germany (Rank: 20) 78.54: Austria (Rank: 22) 77.46: Regional Average (OECD high income) 76.27: Czech Republic (Rank: 30) 76.13: France (Rank: 31) Page 3   71.69: Belgium (Rank: 52) aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Austria Ease of Doing Business in Region OECD high income DB 2018 Rank 190 1 Austria Income Category High income 22 Population 8,747,358 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 45,230 0 100 78.54 City Covered Vienna DB 2018 Distance to Frontier (DTF) 0 100 79.00: Germany (Rank: 20) 78.54: Austria (Rank: 22) 77.46: Regional Average (OECD high income) 76.27: Czech Republic (Rank: 30) 76.13: France (Rank: 31) 71.69: Belgium (Rank: 52) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Austria 1 1 9 22 23 31 29 28 42 39 55 77 82 Rank 109 118 136 163 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Austria 100.00 100 87.71 83.13 83.34 79.97 75.00 75.49 77.43 80 68.33 60 55.00 DTF 40 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.01 Change:0.00 Change:0.00 Investors Change:-0.07 Borders Change:0.00 Change:-1.50 Change:+0.03 Permits Change:0.00 Change:0.00 Change:+0.04 Starting a Business Page 4   This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.01 Change:0.00 Change:0.00 Investors Change:-0.07 Borders Change:0.00 Change:-1.50 Change:+0.03 Permits Change:0.00 Change:0.00 Doing Business 2018 Austria Change:+0.04 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Standardized Company Page 5   before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Austria Standardized Company Legal form Gesellschaft mit beschränkter Haftung (GmbH) Paid-in minimum capital requirement EUR 5,000 City Covered Vienna OECD high OECD high Indicator Austria income income Overall Best Performer Procedure – Men (number) 8 4.9 4.9 1.00 (New Zealand) Time – Men (days) 21 8.5 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 5.1 3.1 3.1 0.00 (United Kingdom) Procedure – Women (number) 8 4.9 4.9 1.00 (New Zealand) Time – Women (days) 21 8.5 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 5.1 3.1 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 12.5 8.7 8.7 0.00 (113 Economies) Figure – Starting a Business in Austria and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 94.43: Belgium (Rank: 16) 93.28: France (Rank: 25) 91.35: Regional Average (OECD high income) 87.44: Czech Republic (Rank: 81) 83.46: Germany (Rank: 113) 83.13: Austria (Rank: 118) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Austria – Procedure, Time and Cost Time Cost 6 20 5 ost (% of income per capita) 15 4 Time (days) 3 10 2 Page 6   5 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Austria Figure – Starting a Business in Austria – Procedure, Time and Cost Time Cost 6 20 5 Cost (% of income per capita) 15 4 Time (days) 3 10 2 5 1 0 0 1 2 3 4 5 *6 *7 *8 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Austria – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain the con rmation from the Economic Chamber that the start-up 1 day no charge company is really a new enterprise Agency : Economic Chamber A form (NeuFö2), which is available electronically on the homepage of the Austrian Ministry of Finance must be lled in and be con rmed by the Economic Chamber. The Neufö applies to the company formation and to the transfer of businesses. Procedure 1 is optional but it can lead to exemption from paying certain publicly levied fees and taxes. If certain requirements are met, the following fees and taxes will be waived: • Stamp duties and certain administrative fees. • Real estate transfer tax. • Charges for registration in the commercial register and the cadastral register. • For 1 year, certain ancillary wage costs borne by the employer in addition to social security contributions. Depending on the requested exemptions, companies must obtain con rmation by certain public bodies (Chamber of Commerce or Social Security Organization) that the application form has been completed, after receiving counseling by that body concerning the scope and applicability of the law. 2 Notarize the statutes/articles of association or the declaration of 1 day About EUR 2,000. establishment fee There is an officialPage 7   schedule (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Austria Details – Starting a Business in Austria – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain the con rmation from the Economic Chamber that the start-up 1 day no charge company is really a new enterprise Agency : Economic Chamber A form (NeuFö2), which is available electronically on the homepage of the Austrian Ministry of Finance must be lled in and be con rmed by the Economic Chamber. The Neufö applies to the company formation and to the transfer of businesses. Procedure 1 is optional but it can lead to exemption from paying certain publicly levied fees and taxes. If certain requirements are met, the following fees and taxes will be waived: • Stamp duties and certain administrative fees. • Real estate transfer tax. • Charges for registration in the commercial register and the cadastral register. • For 1 year, certain ancillary wage costs borne by the employer in addition to social security contributions. Depending on the requested exemptions, companies must obtain con rmation by certain public bodies (Chamber of Commerce or Social Security Organization) that the application form has been completed, after receiving counseling by that body concerning the scope and applicability of the law. 2 Notarize the statutes/articles of association or the declaration of 1 day About EUR 2,000. establishment There is an official fee Agency : Notary schedule (“Notariatstarifgesetz”) The articles of association (Gesellschaftsvertrag), which must be executed which is regarded as a before a notary by notary deed (Notariatsakt), must include the following: maximum amount for name, seat, scope of activities, capital and initial contribution by each notary fees. The shareholder. notary fees are usually Cost will depend on the authorized share capital and are subject to subject to negotiation with the notary public. negotiations. 3 Deposit the minimum capital requirement in the bank 1 day no charge Agency : Bank The con rmation fee depends on the bank, ranging from EUR 0 to about EUR 30. 4 Register the company at the local court (Handelsgericht) 6 days EUR 32 Agency : Local Commercial Court The application for registering an Austrian limited liability company (Gesellschaft mit beschränkter Haftung, GmbH) must be accompanied by the following documents: -Declaration of establishment notarized; -Articles of association; -A declaration (accompanied by a banker's con rmation) that the demanded amount of primary deposit, to be paid in cash, has been paid; -Evidence that the free disposability of the paid primary deposit by Page 8   The con rmation fee depends on the bank, ranging from EUR 0 to about DoingEUR 30. Business 2018 Austria 4 Register the company at the local court (Handelsgericht) 6 days EUR 32 Agency : Local Commercial Court The application for registering an Austrian limited liability company (Gesellschaft mit beschränkter Haftung, GmbH) must be accompanied by the following documents: -Declaration of establishment notarized; -Articles of association; -A declaration (accompanied by a banker's con rmation) that the demanded amount of primary deposit, to be paid in cash, has been paid; -Evidence that the free disposability of the paid primary deposit by managing directors is not restricted by counterclaims; -Specimen signatures of the managing directors; If the court has doubts about the company name, it may request an opinion from the Chamber of Commerce. A GmbH comes into legal existence upon registration in the commercial registry. The xed application fee (court fee) amounts to EUR 32; individual service fees, depending on the information to be registered, apply (e.g., registration of a managing director amounts to EUR 28). Public notaries and lawyers are obliged to le any petition as well as related documents, deeds, etc. in electronic form; the application fee for physical or non- electronic applications will be raised to EUR 49. Please note, that the court fees do not apply if the requirements for the start up governmental aid (see Procedure 1) are met. 5 Tax O ce registration (obtain a VAT number) 12 days no charge Agency : Tax O ce The commercial register automatically informs tax authorities of the registration of new companies. In turn, tax authorities usually respond by requesting that the company le for tax registration. Registration is not available online, several forms must be printed, lled out, and sent by postal mail together with the articles of association, the opening balance sheet, an excerpt of the company register, an identi cation card of a managing director, and a specimen signature sheet of the representatives. The VAT number is usually issued simultaneously with the tax identi cation number. The statutory deadline to obtain a tax number is 1 month. Frequently tax authorities extend an introductory visit to those companies intending to engage in business activities that are eligible for the ling of VAT returns. Once registered companies can submit all of their tax returns online, via the website: https:// nanzonline.bmf.gv.at/ 6 Register trade (Gewerbeanmeldung) with the trade authority Less than one day no charge if (Bezirksverwaltungsbehörde) (online procedure, exemption is granted Agency : Trade authority simultaneous with under Procedure 1; previous otherwise stamp If permission is mandatory, completion of procedures takes longer, procedure) duties vary depending depending on the requirements and authorities involved (e. g., the on the type of trade production of hazardous goods requires proof of special quali cations of intended and whether management and approval and control of the production site). Companies can register in person, by postal mail, or online. the trade and/or profession only requires registration Page 9   or it requires Once registered companies can submit all of their tax returns online, via Doingthe https:// nanzonline.bmf.gv.at/ website: 2018 Business Austria 6 Register trade (Gewerbeanmeldung) with the trade authority Less than one day no charge if (Bezirksverwaltungsbehörde) (online procedure, exemption is granted Agency : Trade authority simultaneous with under Procedure 1; previous otherwise stamp If permission is mandatory, completion of procedures takes longer, procedure) duties vary depending depending on the requirements and authorities involved (e. g., the on the type of trade production of hazardous goods requires proof of special quali cations of intended and whether management and approval and control of the production site). Companies can register in person, by postal mail, or online. the trade and/or profession only requires registration or it requires permission by authorities (i.e. particular professional qualification must be proven). 7 Register employees for social security Less than one day no charge Agency : Social Security (online procedure, simultaneous with Upon registering in the commercial register, companies with employees previous must apply for an employer's account number (Dienstgeberkontonummer) procedure) electronically via ELDA, the data transmission interface of the statutory health insurance o ce (Gebietskrankenkasse). In practice, the employer applies for a new account number via ELDA (under the menu item, Online- Services [Kontonummeranforderung]) before a new employee is registered with the statutory health insurance o ce. Health insurance is obligatory: every new employee must be electronically registered with the statutory health insurance o ce prior to and no later than the day of employment. Unless the company does not own a computer, the employee must be registered via ELDA. Moreover, the employer must automatically extend obligatory health insurance upon entry. On being registered with the statutory health insurance o ce, the employee is automatically registered for accident insurance and retirement insurance as provided by law. No further registration is needed. By data transmission, the employee is immediately registered with the competent statutory health insurance o ce (social insurance o ce). The employer instantly receives a “sent” report and a con rmation of registration. 8 Register with the municipality 1 day, no charge Agency : Municipality (simultaneous with previous Municipalities levy community taxes on all businesses. In addition, procedure) particular activities (e.g., organizing a public event) may trigger municipal stamp duties or other minor duties and taxes. Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more Page 10   Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Austria Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Page 11   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Austria Standardized Warehouse Estimated value of warehouse EUR 1,993,416.70 City Covered Vienna OECD high OECD high Indicator Austria income income Overall Best Performer Procedures (number) 11 12.5 12.5 7.00 (Denmark) Time (days) 222 154.6 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 1.2 1.6 1.6 0.10 (5 Economies) Building quality control index (0-15) 13.0 11.4 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Austria and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 79.29: France (Rank: 18) 78.16: Germany (Rank: 24) 75.36: Belgium (Rank: 39) 75.14: Regional Average (OECD high income) 75.00: Austria (Rank: 42) 62.77: Czech Republic (Rank: 127) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Austria – Procedure, Time and Cost Time Cost 0.45 200 0.4 Cost (% of warehouse value) 0.35 150 0.3 Time (days) 0.25 100 0.2 0.15 50 0.1 0.05 0 0 1 *2 *3 *4 *5 *6 7 8 9 10 * 11 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 12   component indicators. Doing Business 2018 Austria Figure – Dealing with Construction Permits in Austria – Procedure, Time and Cost Time Cost 0.45 200 0.4 Cost (% of warehouse value) 0.35 150 0.3 Time (days) 0.25 100 0.2 0.15 50 0.1 0.05 0 0 1 *2 *3 *4 *5 *6 7 8 9 10 * 11 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Austria and comparator economies – Measure of Quality 16 14.0 14 13.0 12.0 12.0 12 11.4 9.5 Index score 10 8 6 4 2 0 Austria Belgium Czech Republic France Germany OECD high income Details – Dealing with Construction Permits in Austria – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain industrial operating permit 80 days EUR 300 Agency : Vienna City Administration In Austria industrial operating permits (plant permits) are required when the plant (i) could endanger the lives, health or property of neighbors or employees of the plant; (ii) could cause inconvenience to neighbors with respect to noise, dust, smoke or other pollution; (iii) could cause inconvenience to public institutions such as churches, schools, hospitals; or (iv) could possibly endanger the quality of water. When issuing a industrial operating permits, the relevant authority usually imposes a number of conditions that the owner of the plant needs to ful ll Page 13   during its operation. The plant permit is not obligatory required prior to Austria Belgium Czech Republic France Germany OECD high income Doing Business 2018 Austria Details – Dealing with Construction Permits in Austria – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain industrial operating permit 80 days EUR 300 Agency : Vienna City Administration In Austria industrial operating permits (plant permits) are required when the plant (i) could endanger the lives, health or property of neighbors or employees of the plant; (ii) could cause inconvenience to neighbors with respect to noise, dust, smoke or other pollution; (iii) could cause inconvenience to public institutions such as churches, schools, hospitals; or (iv) could possibly endanger the quality of water. When issuing a industrial operating permits, the relevant authority usually imposes a number of conditions that the owner of the plant needs to ful ll during its operation. The plant permit is not obligatory required prior to obtaining a construction permit. However, it might be helpful obtaining the plant permit before obtaining a construction permit as the plant permit (potentially) will set out several requirements that should be considered in respect of the construction permit. 2 Obtain approval of heat and noise insulation 30 days EUR 5,000 Agency : Independent Expert - Insulation Engineering This approval is issued by an insulation engineering expert. BuildCo must hire a third-party specialist to conduct this work. 3 Obtain proof of land ownership 0.5 days EUR 14 Agency : Land Registry BuildCo must obtain and submit with the building permit request a proof of land ownership that is not older than 3 months. This can be obtained online via certain authorized/registers companies' websites. 4 Obtain expert opinion on structural engineering 11 days EUR 5,000 Agency : Independent Expert - Structural Engineering The company must request this opinion from an independent expert. 5 Obtain energy pass (energieausweiss) 10 days EUR 700 Agency : Independent Expert - Energy Engineering Following the Directive of European Union 2002/91/EC the practice of requiring the so called “Energy Pass” (Energieausweiss) by the Municipality of Vienna has become compulsory for all projects as of January 2009. The energy pass is required when applying for the building permit at the relevant authority of City of Vienna. There are o cially licensed companies and individual engineers that issue the energy pass. The prices may range, however on average it is EUR 700.00 for a building with overall size of 1300.6 sq. m. This procedure will normally take between 1-2 weeks to complete. 6 Receive on-site inspection prior to issuance of building permit 1 day EUR 46 Agency : Municipal Building Inspection (Baupolizei; MA 37) A physical inspection occurs before a building permit is issued. The inspection fee is EUR 7.63 per half hour. The inspection is estimated at 3 hours. The Building Inspection (MA 37) of the City of Vienna is provided upon Page 14   however on average it is EUR 700.00 for a building with overall size of 1300.6 Doing sq. m. This procedure Business will normally take between 1-2 weeks to complete. 2018 Austria 6 Receive on-site inspection prior to issuance of building permit 1 day EUR 46 Agency : Municipal Building Inspection (Baupolizei; MA 37) A physical inspection occurs before a building permit is issued. The inspection fee is EUR 7.63 per half hour. The inspection is estimated at 3 hours. The Building Inspection (MA 37) of the City of Vienna is provided upon approval of construction projects and is responsible for monitoring of buildings, orderly expansion of the city, and ensuring the safety of citizens. 7 Hire a licensed engineer for construction supervision 1 day EUR 4,800 Agency : Private licensed engineer (Prü ngenieur) BuildCo has to hire an external supervising engineer to supervise the entire construction process. The supervising engineer will visit the construction site at least once per week to ensure that the construction is in line with the relevant construction regulations. The engineers usually charge between EUR 120 - EUR 200 per hour of work. 8 Obtain building permit 80 days EUR 300 Agency : Municipal Building Inspection (Baupolizei; MA 37) The construction must begin within 4 years of the date of issue, and be completed within and additional 4 years after the start of construction. Documents required for a building permit: • Application for building permit • Approval of the land ownership of registered land • Current Land Registry copy (not older than three months) • An energy performance certi cate (in electronic form) and proof of noise control, heat and sound insulation • For new, additions or modi cations: con rmation of the plan or author's plan • Demonstration of compliance with the parking requirement • Static concept or preliminary design including foundations for smaller construction projects report that insigni cance of the project for structural reasons, where no risk is due to the (experts or expert) • Con rmation of the principles of accessible design and construction • Design concept for garden areas of the site, for new buildings for construction class III • Proving the availability of su cient water for re ghting on the plan; information on hydrants • Locations for waste receptacles • For enterprises that are under the Seveso II Directive: documentation of the risks • Required documents for architectural review of the Department of Architecture and Urban Design (MA 19) If it is determined that the subjective rights of neighbors are a ected, a public hearing must be held. The cost for a public hearing amount to EUR 7.36 per half hour. 9 Request and receive on-site inspection prior to commencement of 1 day no charge construction Agency : Municipal Building Inspection (Baupolizei; MA 37) Municipal Building Inspection performs a physical inspection before the start of construction. The building inspection during construction is done by the Page 15   building supervisor of the company. However, if any irregularities take place public hearing must be held. The cost for a public hearing amount to EUR Doing 7.36 hour. per half2018 Business Austria 9 Request and receive on-site inspection prior to commencement of 1 day no charge construction Agency : Municipal Building Inspection (Baupolizei; MA 37) Municipal Building Inspection performs a physical inspection before the start of construction. The building inspection during construction is done by the building supervisor of the company. However, if any irregularities take place during the construction, the civil engineer appointed by the municipality will come to the site. 10 Request and obtain water and sewage connection 60 days EUR 8,478 Agency : Vienna Water Works The municipal authority provides both water and sewerage connections. The request can be made online, but service delivery takes 60 days. Notify the municipal authority about completion of construction works 1 day EUR 22 11 Agency : Municipal Building Inspection (Baupolizei; MA 37) Upon completion of construction work, BuildCo must provide the municipal authority with a noti cation of completion. The noti cation must be certi ed by a civil engineer and include several reports. The cost is EUR 22 if no changes to the building design were made, and EUR 50 if there were changes. Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Austria – Measure of Quality Answer Score Building quality control index (0-15) 13.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 0.0 Which third-party entities are required by law to verify that the building plans are in By law, there is 0.0 compliance with existing building regulations? (0-1) no need to verify plans compliance; Civil servant reviews plans. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) external Page 16   Takes place simultaneously with previous procedure. Doing Business 2018 Austria Details – Dealing with Construction Permits in Austria – Measure of Quality Answer Score Building quality control index (0-15) 13.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 0.0 Which third-party entities are required by law to verify that the building plans are in By law, there is 0.0 compliance with existing building regulations? (0-1) no need to verify plans compliance; Civil servant reviews plans. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) external engineer or rm; Inspections at various phases. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, external 2.0 accordance with the approved plans and regulations? (0-2) engineer submits report for nal inspection. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 2.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the supervision; Construction Page 17   company. Liability Doing 2018 regimes and insurance Business index (0-2) Austria 2.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the supervision; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover Architect or 1.0 possible structural aws or problems in the building once it is in use (Latent Defect engineer; Liability Insurance or Decennial Insurance)? (0-1) Construction company; Insurance is commonly taken in practice. Professional certi cations index (0-4) 4.0 What are the quali cation requirements for the professional responsible for verifying Minimum 2.0 that the architectural plans or drawings are in compliance with existing building number of years regulations? (0-2) of experience; University degree in architecture or engineering; Being a registered architect or engineer; Passing a certi cation exam. What are the quali cation requirements for the professional who supervises the Minimum 2.0 construction on the ground? (0-2) number of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer; Passing a certi cation exam. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Page 18   certi cation exam. Doing Business 2018 Austria Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the Official costs only, no bribes warehouse is located and requires works that involve the crossing of a 10- meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 19   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Austria Standardized Connection Price of electricity (US cents per kWh) 8.9 Name of utility Wiener Netze GmbH City Covered Vienna OECD high OECD high Indicator Austria income income Overall Best Performer Procedures (number) 5 4.7 4.7 2 (United Arab Emirates) Time (days) 23 79.1 79.1 10 (United Arab Emirates) Cost (% of income per capita) 93.5 63.0 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 7 7.4 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Austria and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 98.79: Germany (Rank: 5) 90.33: Czech Republic (Rank: 15) 87.71: Austria (Rank: 22) 85.89: France (Rank: 26) 84.44: Regional Average (OECD high income) 67.30: Belgium (Rank: 103) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Austria – Procedure, Time and Cost Time Cost 100 20 80 Cost (% of income per capita) 15 Time (days) 60 10 40 5 20 Page 20   getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Austria Figure – Getting Electricity in Austria – Procedure, Time and Cost Time Cost 100 20 80 Cost (% of income per capita) 15 Time (days) 60 10 40 5 20 0 0 1 *2 3 4 *5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Austria and comparator economies – Measure of Quality 8.2 8 8 8 8 8 7.8 7.6 Index score 7.4 7.4 7.2 7 7 6.8 6.6 6.4 Austria Belgium Czech Republic France Germany OECD high income Details – Getting Electricity in Austria – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to Wiener Netze GmbH and await estimate 14 calendar days EUR 0 Agency : Wiener Netze GmbH An application can be submitted online, in person or by mail. There are no costs associated and no documents have to be attached. An assumption of the technical relevant values, like active and reactive power have to be attached to the application. 2 Receive external inspection by Wiener Netze GmbH 9 calendar days EUR 0 Agency : Wiener Netze GmbH An external site inspection is necessary. The waiting time is usually a few days. Someone from the customer’s party has to be present. Page 21   Austria Belgium Czech Republic France Germany OECD high income Doing Business 2018 Austria Details – Getting Electricity in Austria – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to Wiener Netze GmbH and await estimate 14 calendar days EUR 0 Agency : Wiener Netze GmbH An application can be submitted online, in person or by mail. There are no costs associated and no documents have to be attached. An assumption of the technical relevant values, like active and reactive power have to be attached to the application. 2 Receive external inspection by Wiener Netze GmbH 9 calendar days EUR 0 Agency : Wiener Netze GmbH An external site inspection is necessary. The waiting time is usually a few days. Someone from the customer’s party has to be present. 3 Submit completion noti cation for internal wiring and obtain clearance 3 calendar days EUR 24 Agency : Wiener Netze GmbH The customer needs to obtain a clearance for the internal wiring installation from the network operator Wiener Netze GmbH in order to get an electricity connection (“Fertigstellungsanzeige”). The electrician who did the internal wiring has to do a completion noti cation (electrician completion noti cation) by sending this note to Wiener Netze GmbH as proof that the internal wiring is complying with security and safety standards. This clearance is done automatically, meaning the client does not have to go and pick it up, it is processed automatically. The connection contract will be concluded after the clearance. 4 Obtain external works and meter installation by Wiener Netze GmbH 6 calendar days EUR 37,233.4 Agency : Wiener Netze GmbH The external works start immediately after signature of the contract. The utility carries out the external work, and will also provide all the material and build a new transformer on the private ground of the customer. The meter gets installed at the same time. The utility installs the meter and is the owner of it. Electricity starts owing immediately if a contract with a supplier of electricity has been signed. The connection fees in Austria are composed of two parts: 1) Fee for accessing the net ("Netzzutrittsentgelt") which includes all costs such as labor and material cost. The utility installs standard transformers of 360kVA. In the case of a 140kVA connection, the customer would pay about half the cost of the transformer and the remaining capacity would be used by other customers. 2) Fee for using the net ("Netzbereitstellungsentgelt" at Netzebene 6). With a power connection of 140kVA, the customer is automatically on Level 6, meaning the customer owns the connection to the transformer and is directly connected to the low tension side of the transformer. There are meter installation costs. 5 Sign supply contract with an electricity supplier 2 calendar days EUR 0 Agency : Wien Energie Vertrieb GmbH & CO KG, or another energy supplier The Distribution System Operator (Wiener Netze GmbH) only provides network services, so the customer needs to conclude a contract with a supplier in order to receive electricity. The customer can choose the electricity supplier of his/her choice – the largest supplier for the Vienna area is Wien Energie Vertrieb GmbH & Co KG, but any other supplier can also be chosen. The supply contract can be concluded already before the external Page 22   connection works are nished. owns the connection to the transformer and is directly connected to the low Doing tension of the transformer. side 2018 Business Austria There are meter installation costs. 5 Sign supply contract with an electricity supplier 2 calendar days EUR 0 Agency : Wien Energie Vertrieb GmbH & CO KG, or another energy supplier The Distribution System Operator (Wiener Netze GmbH) only provides network services, so the customer needs to conclude a contract with a supplier in order to receive electricity. The customer can choose the electricity supplier of his/her choice – the largest supplier for the Vienna area is Wien Energie Vertrieb GmbH & Co KG, but any other supplier can also be chosen. The supply contract can be concluded already before the external connection works are nished. Takes place simultaneously with previous procedure. Details – Getting Electricity in Austria – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 7 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.8 System average interruption frequency index (SAIFI) 0.8 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 1.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online https://www.e- control.at/ Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. Page 23   If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Takes place simultaneously with previous procedure. Doing Business 2018 Austria Details – Getting Electricity in Austria – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 7 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.8 System average interruption frequency index (SAIFI) 0.8 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 1.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online https://www.e- control.at/ Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Page 24   If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Austria Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Standard Property Transfer Property value EUR 1,993,416.70 City Covered Vienna Page 25   OECD high OECD high Doing Business 2018 Austria Standard Property Transfer Property value EUR 1,993,416.70 City Covered Vienna OECD high OECD high Indicator Austria income income Overall Best Performer Procedures (number) 3 4.6 4.6 1.00 (4 Economies) Time (days) 20.5 22.3 22.3 1.00 (3 Economies) Cost (% of property value) 4.6 4.2 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 23.0 22.7 22.7 29.00 (Singapore) Figure – Registering Property in Austria and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 79.97: Austria (Rank: 31) 79.68: Czech Republic (Rank: 32) 76.81: Regional Average (OECD high income) 65.71: Germany (Rank: 77) 60.69: France (Rank: 100) 51.40: Belgium (Rank: 138) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Austria – Procedure, Time and Cost Time Cost 5 20 4 Cost (% of property value) 15 Time (days) 3 10 2 5 1 0 0 1 2 3 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 26   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Austria Figure – Registering Property in Austria – Procedure, Time and Cost Time Cost 5 20 4 Cost (% of property value) 15 Time (days) 3 10 2 5 1 0 0 1 2 3 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Austria and comparator economies – Measure of Quality 25.5 25.0 25 24.5 24.0 24 Index score 23.5 23.0 23 22.7 22.5 22.5 22.0 22 21.5 21 20.5 Austria Belgium Czech Republic France Germany OECD high income Details – Registering Property in Austria – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a land registry extract from either the competent District Less than a day EUR 13.7 Court, a notary public or an attorney-at-law (online procedure) Agency : District Court, Notary public or Attorney-at-law Before purchasing a property, the buyer inspects the government land register for any legal requirements, rights and restrictions including the seller’s ownership title, mortgages, liens, pre-emption rights, rights of way, canals, lines, brooks. The extract from the government land register will contain that information about any Austrian property and can be obtained at any district court [Bezirksgericht] or mapping o ce Page 27   [Vermessungsamt].Notaries public, lawyers and other people or Austria Belgium Czech Republic France Germany OECD high income Doing Business 2018 Austria Details – Registering Property in Austria – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a land registry extract from either the competent District Less than a day EUR 13.7 Court, a notary public or an attorney-at-law (online procedure) Agency : District Court, Notary public or Attorney-at-law Before purchasing a property, the buyer inspects the government land register for any legal requirements, rights and restrictions including the seller’s ownership title, mortgages, liens, pre-emption rights, rights of way, canals, lines, brooks. The extract from the government land register will contain that information about any Austrian property and can be obtained at any district court [Bezirksgericht] or mapping o ce [Vermessungsamt].Notaries public, lawyers and other people or authorities dealing with the transaction of property also have access to the property database. . 2 Authenticate signatures and authorization of representatives, and 3 days EUR 134.90 per signature property acquisition tax clearance from the notary + 3.5% of property value Agency : Notary (transfer tax) + 1.1% of property value At the notaries o ce the parties can combine three steps: (Registration fee) 1. The signatures of seller and buyer have to be authenticated on the contract. That can be done by the notary or by court (time to complete: can be done within 30 minutes, if required, normally 1 day; cost: EUR 134.90 per person (As of August 1, 2010 the costs for the authentication of the signatures were increased from EUR 111.30 to EUR 134.90 per signature as suggested by the Act on Fees of Public Notaries, last amended by the regulation Federal Law Gazetta BGBI II NR 218/2010); the fee of the court may di er slightly to the notary’s. Provided more than one signature has to be authenticated in one document (e.g. sales agreement), the costs for the further signature amount to 50% of the costs stated (i.e. EUR 67.50). 2. In case of a corporation as seller or buyer the authorization of the signing representatives has to be proven. At the notaries o ce that is done with the authentication of the signatures; otherwise a certi ed excerpt out of the business register produced by the High Court (Landesgericht) has to be presented to the Land Book (time to complete: can be done within 30 minutes, normally 1 day; cost: EUR 13.7 per corporation). 3. The parties have to pay Property Acquisition Tax or Transfer Tax (Grunderwerbssteuer) which, in this case, amounts to 3.5 % of the purchase price. They have to present to the Land Register a clearance certi cate (Unbedenklichkeitsbescheinigung) furnished by the tax authorities certifying that the tax was paid (time to complete: tax assessment will last about 4 weeks; to get the certi cate after paying the tax further 2 weeks; no extra costs). This clearance certi cate may be substituted by a self-assessment declaration (Selbstbemessungserklärung) led by a notary or a lawyer (attorney at law/solicitor) if the tax is paid to the notary or lawyer who cooperates with the tax authorities. The notary public or the attorney-at-law usually Page 28   the property database. Doing. Business 2018 Austria 2 Authenticate signatures and authorization of representatives, and 3 days EUR 134.90 per signature property acquisition tax clearance from the notary + 3.5% of property value Agency : Notary (transfer tax) + 1.1% of property value At the notaries o ce the parties can combine three steps: (Registration fee) 1. The signatures of seller and buyer have to be authenticated on the contract. That can be done by the notary or by court (time to complete: can be done within 30 minutes, if required, normally 1 day; cost: EUR 134.90 per person (As of August 1, 2010 the costs for the authentication of the signatures were increased from EUR 111.30 to EUR 134.90 per signature as suggested by the Act on Fees of Public Notaries, last amended by the regulation Federal Law Gazetta BGBI II NR 218/2010); the fee of the court may di er slightly to the notary’s. Provided more than one signature has to be authenticated in one document (e.g. sales agreement), the costs for the further signature amount to 50% of the costs stated (i.e. EUR 67.50). 2. In case of a corporation as seller or buyer the authorization of the signing representatives has to be proven. At the notaries o ce that is done with the authentication of the signatures; otherwise a certi ed excerpt out of the business register produced by the High Court (Landesgericht) has to be presented to the Land Book (time to complete: can be done within 30 minutes, normally 1 day; cost: EUR 13.7 per corporation). 3. The parties have to pay Property Acquisition Tax or Transfer Tax (Grunderwerbssteuer) which, in this case, amounts to 3.5 % of the purchase price. They have to present to the Land Register a clearance certi cate (Unbedenklichkeitsbescheinigung) furnished by the tax authorities certifying that the tax was paid (time to complete: tax assessment will last about 4 weeks; to get the certi cate after paying the tax further 2 weeks; no extra costs). This clearance certi cate may be substituted by a self-assessment declaration (Selbstbemessungserklärung) led by a notary or a lawyer (attorney at law/solicitor) if the tax is paid to the notary or lawyer who cooperates with the tax authorities. The notary public or the attorney-at-law usually issues the clearance certi cate stating that the real estate transfer tax (3.5% of the purchase price) and registration fee for the Land Register (1.1% of the purchase price) have been paid. The registration fee for the Land Register rises from 1% to 1.1 % of the purchase price due to the regulation Federal Law Gazetta BGBI I Nr 111/2010 and is e ective as of January 01, 2011. The certi cate will be issued immediately after the notary or lawyer has received the amount of the real estate transfer tax and registration fee. The money for the purchase and the taxes is given to the notary/lawyer on a trust account. The parties may set up the contract themselves or use a standard template. In late 2005, the Act concerning “Changes in the vocational law of notary public, attorneys-at- law and civil engineers” was announced, providing for the use of electronic signatures which are to be submitted electronically to the courts. This Act has therefore created the legal basis for online registration and electronic notarial attestation. This reform is e ective as of July 1, 2007. 3 File the application at the competent District Court (Land Registry) 2 to 3 weeks Pursuant to Sec. 32 of the Agency : District Court (Land Registry) Austrian Court Fee Act (Gerichtsgebührengesetz), As of November 1, 2009, applications to transfer and register a property the filing fee has been Page 29   are required to be submitted electronically via an online data-exchange amended and now registration and electronic notarial attestation. This reform is e ective Doingas of July 1, 2007. Business 2018 Austria 3 File the application at the competent District Court (Land Registry) 2 to 3 weeks Pursuant to Sec. 32 of the Agency : District Court (Land Registry) Austrian Court Fee Act (Gerichtsgebührengesetz), As of November 1, 2009, applications to transfer and register a property the filing fee has been are required to be submitted electronically via an online data-exchange amended and now system called WebERV. The WebERV is an online-based form of amounts to EUR 42 (if the communication between the courts, notaries and lawyers for application and the deeds submission of claims, briefs and applications and delivery of court transcripts, orders and decisions. This system provides standardized involved are submitted via masks and forms for various kinds of applications such as registration of WebERV) and to EUR 59 (if the ownership, registration of mortgages, precedences the application and the (Vorrangeinräumung) and cancelations. Documentation on the fact that deeds involved are not the company is owned by Austrian or European Community citizens. submitted via WebERV). This system is e ective as of November 1, 2009 and is provided for by the "Grundbuchs-Novelle 2008" (Land Registry Amendment 2008), Federal Law Gazetta Part 1 No. 100/2008 (BGB1 I 100/2008). As per this law, it is mandatory for attorneys and notaries to submit their applications concerning the transfer and registration of property using this system. Registration with the Land Registry has a binding e ect as from the date of application, i.e. from this moment the company becomes the owner of the entire property (land, building, etc.). The fee for registration (paid to the attorney at law or notary) is freed from the trust account. Also, the notary/lawyer transfers the real property transaction tax to the tax o ce and transfers the purchase price to the seller. The documentation shall include: • Sales agreement • Clearance Certi cate of the tax authority verifying the payment of land transfer tax or self-assessment certi cate • Documentation on the fact that the company is owned by Austrian or European Community citizens Takes place simultaneously with previous procedure. Details – Registering Property in Austria – Measure of Quality Answer Score Quality of the land administration index (0-30) 23.0 Reliability of infrastructure index (0-8) 7.0 What is the institution in charge of immovable property registration? District Courts (Bezirksgerichte) In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Federal O ce for Calibration and Measurement (Bundesamt für Eich- und Vermessungswe sen) Page 30   Takes place simultaneously with previous procedure. Doing Business 2018 Austria Details – Registering Property in Austria – Measure of Quality Answer Score Quality of the land administration index (0-30) 23.0 Reliability of infrastructure index (0-8) 7.0 What is the institution in charge of immovable property registration? District Courts (Bezirksgerichte) In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Federal O ce for Calibration and Measurement (Bundesamt für Eich- und Vermessungswe sen) In what format are the majority of maps of land plots kept in the largest business city— Computer/Fully 2.0 in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Di erent 1.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases but or in separate databases? linked Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0 the same identi cation number for properties? Transparency of information index (0–6) 3.0 Who is able to obtain information on land ownership at the agency in charge of Anyone who 1.0 immovable property registration in the largest business city? pays the o cial fee Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made publicly available–and if so, how? Link for online access: https://www.help .gv.at/Portal.Nod e/hlpd/public/co ntent/20/Seite.20 0060.html#Verfa hrensablaufhttps ://www.help.gv.at /Portal.Node/hlp d/public/content /20/Seite.200060. html#Erforderlic heUnterlagen Page 31   http://www.justiz. Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made Doing publicly available–and Business 2018 Austriaif so, how? Link for online access: https://www.help .gv.at/Portal.Nod e/hlpd/public/co ntent/20/Seite.20 0060.html#Verfa hrensablaufhttps ://www.help.gv.at /Portal.Node/hlp d/public/content /20/Seite.200060. html#Erforderlic heUnterlagen http://www.justiz. gv.at/web2013/ht ml/default/2c948 4852308c2a6012 40b4acb4b0842. de.html http://media.arb eiterkammer.at/ PDF/Grundbuch_ Infos.pdf http://www.advo kat.at/_down/ER VGrundbuch_Bei spiele.pdf Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: https://www.ris.b ka.gv.at/Geltend eFassung.wxe? Abfrage=Bundes normen&Gesetz esnummer=1000 2667 www.ris.bka.gv.at (Bundesrecht - Bundesrecht konsolidiert - search for Titel, Abkürzung "GGG", Paragraf von "32" and then scroll to "Tarifpost 9" for the court fees https://www.usp. gv.at/Portal.Nod e Does the agency in charge of immovable property registration commit to delivering a No 0.0 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: Page 32   legally binding document that proves property ownership within a speci c time frame– and if Doing so, how does Business 2018 Austria the service standard? it communicate Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available o cial statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2015: Who is able to consult maps of land plots in the largest business city? Anyone who 0.5 pays the o cial fee Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5 —and if so, how? Link for online access: http://www.bev.g v.at/portal/page? _pageid=713,194 1531&_dad=port al&_schema=PO RTAL https://www.usp. gv.at/Portal.Nod e (amount depending on size of property) https://www.help .gv.at/Portal.Nod e/hlpd/public/co ntent/60/Seite.60 0300.html#Grun dbuchsabfrage Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 speci c time frame—and if so, how does it communicate the service standard? Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 8.0 Are all privately held land plots in the economy formally registered at the immovable Yes 2.0 property registry? Are all privately held land plots in the largest business city formally registered at the Yes 2.0 immovable property registry? Are all privately held land plots in the economy mapped? Yes 2.0 Are all privately held land plots in the largest business city mapped? Yes 2.0 Land dispute resolution index (0–8) 5.0 Page 33   Are all Doing privately held Business 2018 plots in the economy mapped? landAustria Yes 2.0 Are all privately held land plots in the largest business city mapped? Yes 2.0 Land dispute resolution index (0–8) 5.0 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who No 0.0 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Notary. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary. Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a Regional Court property worth 50 times gross national income (GNI) per capita and located in the for Civil largest business city, what court would be in charge of the case in the rst instance? Proceedings Vienna (Landesgericht für Zivilrechtssachen Wien) How long does it take on average to obtain a decision from the rst-instance court for Between 1 and 2 2.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Page 34   What the indicators measure Case study assumptions Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Austria Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. OECD high OECD high Indicator Austria income income Overall Best Performer Strength of legal rights index (0-12) 4 6.0 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 6.6 6.6 8.00 (34 Economies) Page 35   Credit registry coverage (% of adults) 2.2 18.3 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Austria OECD high OECD high Indicator Austria income income Overall Best Performer Strength of legal rights index (0-12) 4 6.0 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 6.6 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 2.2 18.3 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 52.8 63.7 63.7 100.00 (23 Economies) Figure – Getting Credit in Austria and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 70.00: Czech Republic (Rank: 42) 70.00: Germany (Rank: 42) 63.03: Regional Average (OECD high income) 55.00: Austria (Rank: 77) 50.00: France (Rank: 90) 45.00: Belgium (Rank: 105) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Austria and comparator economies 8 7 7 6 6.0 6 Index score 5 4 4 4 4 3 2 1 0 Austria Belgium Czech Republic France Germany OECD high income Details – Legal Rights in Austria Strength of legal rights index (0-12) 4 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Page 36   Austria Belgium Czech Republic France Germany OECD high income Doing Business 2018 Austria Details – Legal Rights in Austria Strength of legal rights index (0-12) 4 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring No a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds No or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and Yes obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically No and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency Yes procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? Yes Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law Yes allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Austria and comparator economies 10 8 8 7 7 6.6 Index score 6 6 5 4 2 0 Austria Belgium Czech Republic France Germany OECD high income Details – Credit Information in Austria Page 37   0 Austria Doing Business 2018 AustriaBelgium Czech Republic France Germany OECD high income Details – Credit Information in Austria Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? No No 0 Are both positive and negative credit data distributed? Yes No 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - Yes No 1 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more Yes No 1 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes No 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes No 1 Can banks and financial institutions access borrowers’ credit information online (for example, Yes No 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial Yes No 1 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 7 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 3,087,672 65,112 Number of firms 0 65,878 Total 3,087,672 130,990 Percentage of adult population 52.8 2.2 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 38   transactions; Available legal remedies (damages, Percentage of adult population 52.8 2.2 Doing Business 2018 Austria Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. OECD high OECD high Indicator Austria income income Overall Best Performer Extent of conflict of interest regulation index (0- 5.7 6.4 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 8 6.4 6.4 Page 39   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Austria OECD high OECD high Indicator Austria income income Overall Best Performer Extent of conflict of interest regulation index (0- 5.7 6.4 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 8 6.4 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Austria and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 68.33: Austria (Rank: 29) 66.67: France (Rank: 33) 63.93: Regional Average (OECD high income) 60.00: Belgium (Rank: 57) 58.33: Czech Republic (Rank: 62) 58.33: Germany (Rank: 62) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Austria and comparator economies – Measure of Quality Austria 8 5 5 9 7 7 Belgium 7 6 8 4 4 7 Czech Republic 5 6 2 7 6 9 France 10 3 8 8 5 6 Germany 7 5 5 6 7 5 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 0 5 10 15 20 25 30 35 40 45 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Austria – Measure of Quality Answer Score Page 40   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Austria Details – Protecting Minority Investors in Austria – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 5.7 Extent of disclosure index (0-10) 5 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0 directors excluding interested members Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Existence of a 1.0 con ict without any speci cs Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0 2) obligation Extent of director liability index (0-10) 5 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if negligent 1.0 caused to Buyer? (0-2) Can shareholders hold the other directors liable for the damage the transaction caused Liable if negligent 1.0 to Buyer (0-2) Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by Yes 1.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Only in case of 0.0 fraud or bad faith Ease of shareholder suits index (0-10) 7 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Page 41   Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction Doing 2018 (0-1) documents? Business Austria Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Preapproved 1.0 questions only Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 8 Extent of shareholder rights index (0-10) 7 Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new Yes 1.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new Yes 1.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their No 0.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 9 Is it forbidden to appoint the same individual as CEO and chair of the board of Yes 1.0 directors? Must the board of directors include independent and nonexecutive board members? Yes 1.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Page 42   Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board Doing members? Business 2018 Austria Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve Yes 1.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a Yes 1.0 maximum period set by law? Extent of corporate transparency index (0-10) 8 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and No 0.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? Yes 1.0 Must a detailed notice of general meeting be sent 21 days before the meeting? Yes 1.0 Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0 Assuming that Buyer is a limited company, can members representing 5% put items on No 0.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Page 43   Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Austria Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect Post ling Index tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. OECD high OECD high Indicator Austria income income Overall Best Performer Payments (number per year) 12 10.9 10.9 3 (Hong Kong SAR, China) Page 44   return, but within the tax assessment period. Doing Business 2018 Austria OECD high OECD high Indicator Austria income income Overall Best Performer Payments (number per year) 12 10.9 10.9 3 (Hong Kong SAR, China) Time (hours per year) 131 160.7 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 51.8 40.1 40.1 18.47% (32 Economies) Postfiling index (0-100) 98.54 83.45 83.45 99.38 (Estonia) Figure – Paying Taxes in Austria and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 83.34: Austria (Rank: 39) 83.07: Regional Average (OECD high income) 82.14: Germany (Rank: 41) 79.26: Czech Republic (Rank: 53) 78.55: France (Rank: 54) 77.69: Belgium (Rank: 59) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Austria and comparator economies – Measure of Quality 105 100 98.54 97.67 95 Index score 92.40 90.75 90 85 83.45 83.45 80 75 Austria Belgium Czech Republic France Germany OECD high income Details – Paying Taxes in Austria Total tax and Tax or mandatory Payments Notes on Time Statutory tax contribution rate (% Notes contribution (number) Payments (hours) rate Tax base of profit) on TTR Page 45   Social security 1 online 50 20.98%-21.48% gross salaries 23.58 Doing Business 2018 Austria Figure – Paying Taxes in Austria and comparator economies – Measure of Quality 105 100 98.54 97.67 95 Index score 92.40 90.75 90 85 83.45 83.45 80 75 Austria Belgium Czech Republic France Germany OECD high income Details – Paying Taxes in Austria Total tax and Tax or mandatory Payments Notes on Time Statutory tax contribution rate (% Notes contribution (number) Payments (hours) rate Tax base of profit) on TTR Social security 1 online 50 20.98%-21.48% gross salaries 23.58 contributions Corporate income tax 1 online 46 25% taxable profit 16.98 Contribution to family 0 jointly 4.5% gross salaries 5.08 fund Municipal employees 1 online 3% gross salaries 3.38 tax Contribution to 0 jointly 1.53% gross salaries 1.73 pension fund Contribution to the 1 online 0.4% gross salaries 0.45 chamber of commerce Property tax 1 online variable value land 0.41 assessed by tax authority Tax on insurance 1 online 1% & 11% insurance 0.12 contracts premium Advertising tax 1 online 5% value of service 0.09 Value added tax (VAT) 1 online 35 20% value added 0.00 not included Vehicle tax 1 fixed fee 0.00 small amount Road tax 1 online fixed fee 0.00 small amount Stamp duty 1 0.8% to 2% depending on 0.00 small taxable event Page 46   amount Road tax 1 online fixed fee 0.00 small Doing Business 2018 Austria amount Stamp duty 1 0.8% to 2% depending on 0.00 small taxable event amount Fuel Tax 1 EUR 397 per fuel consumption 0.00 small 1000 liter amount Totals 12 131 51.8 Details – Paying Taxes in Austria – Tax by Type Taxes by type Answer Profit tax (% of profit) 17.0 Labor tax and contributions (% of profit) 34.2 Other taxes (% of profit) 0.6 Details – Paying Taxes in Austria – Measure of Quality Answer Score Post ling index (0-100) 98.54 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? Yes Restrictions on VAT refund process None Percentage of cases exposed to a VAT audit (%) 25% - 49% Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) 2.0 96 Time to obtain a VAT refund (weeks) 3.2 100 Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 0% - 24% Time to comply with a corporate income tax audit (hours) 2.5 98.17 Time to complete a corporate income tax audit (weeks) No tax audit per 100 case study scenario Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with Page 47   a corporate income tax audit and time to complete a corporate income tax audit. Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. Doing The Business hours 2018 all Austria for VAT include the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while shipment is en route largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road Page 48   police, border guards, standardization agencies, ministries or departments a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Austria Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while shipment is en route largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 49   of agriculture or industry, national security agencies and any other Doing Business 2018 Austria government authorities. OECD high OECD high Indicator Austria income income Overall Best Performer Time to export: Border compliance (hours) 0 12.7 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 0 149.9 149.9 0.00 (19 Economies) Time to export: Documentary compliance 1 2.4 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 0 35.4 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 0 8.7 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 0 111.6 111.6 0.00 (27 Economies) Time to import: Documentary compliance 1 3.5 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 0 25.6 25.6 0.00 (30 Economies) Figure – Trading across Borders in Austria and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 93.92: Regional Average (OECD high income) 91.77: Germany (Rank: 39) 100.00: Austria (Rank: 1) 100.00: Belgium (Rank: 1) 100.00: Czech Republic (Rank: 1) 100.00: France (Rank: 1) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Austria – Time and Cost Time Cost 1.2 1.2 1 1 1 1 0.8 0.8 Time (hours) Cost (USD) 0.6 0.6 0.4 0.4 0.2 0.2 0 0 0 0 0 0 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Page 50   Doing Business 2018 Austria Figure – Trading across Borders in Austria – Time and Cost Time Cost 1.2 1.2 1 1 1 1 0.8 0.8 Time (hours) Cost (USD) 0.6 0.6 0.4 0.4 0.2 0.2 0 0 0 0 0 0 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Austria Characteristics Export Import Product HS 84 : Nuclear reactors, boilers, machinery and mechanical HS 8708: Parts and accessories of appliances; parts thereof motor vehicles Trade partner Germany Germany Border Austria-Germany border crossing Austria- Germany border crossing Distance (km) 131 131 Domestic transport 2 2 time (hours) Domestic transport 188 188 cost (USD) Details – Trading across Borders in Austria – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 0.0 0.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 0.0 0.0 Import: Clearance and inspections required by customs authorities 0.0 0.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 0.0 0.0 Details – Trading across Borders in Austria – Trade Documents Export Import Page 51   cost (USD) Doing Business 2018 Austria Details – Trading across Borders in Austria – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 0.0 0.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 0.0 0.0 Import: Clearance and inspections required by customs authorities 0.0 0.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 0.0 0.0 Details – Trading across Borders in Austria – Trade Documents Export Import Commercial invoice Commercial invoice Packing List CMR Waybill CMR Waybill Packing list Intrastat Intrastat Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Page 52   Intrastat Intrastat Doing Business 2018 Austria Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Standardized Case Claim value EUR 77,834.00 Court name Vienna Commercial Court City Covered Vienna OECD high OECD high Indicator Austria income income Overall Best Performer Time (days) 397 577.8 577.8 164.00 (Singapore) Cost (% of claim value) 20.6 21.5 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 13.0 11.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Austria and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 75.49: Austria (Rank: 9) 73.04: France (Rank: 15) 71.32: Germany (Rank: 22) Page 53   of judicial processes Quality Business Doing index (0-18) 2018 Austria 13.0 11.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Austria and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 75.49: Austria (Rank: 9) 73.04: France (Rank: 15) 71.32: Germany (Rank: 22) 66.76: Regional Average (OECD high income) 64.25: Belgium (Rank: 52) 58.21: Czech Republic (Rank: 91) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Austria – Time and Cost Time Cost 700 40 611 33.8 600 577.8 35 Cost (% of claim value) 505 499 30 500 Time (days) 397 395 21.5 25 400 20.6 18.0 17.4 20 300 14.4 15 200 10 100 5 0 0 Austria Belgium Czech Republic France Germany OECD high income Figure – Enforcing Contracts in Austria and comparator economies – Measure of Quality Austria 2.5 4 2 4.5 Belgium 2.5 1 0 4.5 Czech Republic 2 3 3 1.5 France 2.5 3 1 4.5 Germany 3 1.5 2 4.5 OECD high income 2.5 2.9 2 3.6 0 2 4 6 8 10 12 Page 54   14 0 0 Austria Belgium Czech Republic France Germany OECD high income Doing Business 2018 Austria Figure – Enforcing Contracts in Austria and comparator economies – Measure of Quality Austria 2.5 4 2 4.5 Belgium 2.5 1 0 4.5 Czech Republic 2 3 3 1.5 France 2.5 3 1 4.5 Germany 3 1.5 2 4.5 OECD high income 2.5 2.9 2 3.6 0 2 4 6 8 10 12 14 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Austria Indicator Time (days) 397 Filing and service 30 Trial and judgment 277 Enforcement of judgment 90 Cost (% of claim value) 20.6 Attorney fees 13.6 Court fees 6.5 Enforcement fees 0.5 Quality of judicial processes index (0-18) 13.0 Court structure and proceedings (-1-5) 4.5 Case management (0-6) 4.0 Court automation (0-4) 2.0 Alternative dispute resolution (0-3) 2.5 Details – Enforcing Contracts in Austria – Measure of Quality Page 55   Alternative dispute resolution (0-3) 2.5 Doing Business 2018 Austria Details – Enforcing Contracts in Austria – Measure of Quality Answer Score Quality of judicial processes index (0-18) 13.0 Court structure and proceedings (-1-5) 4.5 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, but manual 0.5 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 4.0 1. Time standards 0.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? No 1.c. Are these time standards respected in more than 50% of cases? Yes 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) Yes 1.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the Yes 1.0 competent court? 5. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by lawyers? Court automation (0-4) 2.0 1. Can the initial complaint be led electronically through a dedicated platform within Yes 1.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 56   1. Can the initial complaint be led electronically through a dedicated platform within Yes 1.0 Businesscourt? the competent Doing 2018 Austria 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? Yes 1.0 4. Publication of judgments 0.0 4.a Are judgments rendered in commercial cases at all levels made available to the No general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme No court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.5 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 1.0 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., No if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 57   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Austria Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) OECD high OECD high Indicator Austria income income Overall Best Performer Recovery rate (cents on the dollar) 80.0 71.2 71.2 93.1 (Norway) Time (years) 1.1 1.7 1.7 0.4 (Ireland) Page 58   Cost (% of estate) 10.0 9.1 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Austria OECD high OECD high Indicator Austria income income Overall Best Performer Recovery rate (cents on the dollar) 80.0 71.2 71.2 93.1 (Norway) Time (years) 1.1 1.7 1.7 0.4 (Ireland) Cost (% of estate) 10.0 9.1 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 1 .. .. .. concern) Strength of insolvency framework index (0-16) 11.0 12.1 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Austria and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.27: Germany (Rank: 4) 81.46: Belgium (Rank: 11) 77.43: Austria (Rank: 23) 76.69: Czech Republic (Rank: 25) 76.12: Regional Average (OECD high income) 73.91: France (Rank: 28) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Austria – Time and Cost Time Cost 2.5 17.0 18 2.1 16 2 1.9 14 1.7 Cost (% of estate) 12 Time (years) 1.5 10.0 9.0 1.2 9.1 10 1.1 8.0 0.9 8 1 6 3.5 0.5 4 2 0 0 Austria Belgium Czech Republic France Germany OECD high income Figure – Resolving Insolvency in Austria and comparator economies – Measure of Quality Austria 5.5 2.5 2 1 Page 59   0 0 Austria Belgium Czech Republic France Germany OECD high income Doing Business 2018 Austria Figure – Resolving Insolvency in Austria and comparator economies – Measure of Quality Austria 5.5 2.5 2 1 Belgium 6 2.5 2 1 Czech Republic 5.5 2.5 2 3 France 6 3 1 1 Germany 6 3 3 3 OECD high income 5.4 2.8 2.3 1.9 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Austria and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 90 84.6 80.0 80.6 80 73.5 71.2 70 67.0 60 50 40 30 20 10 0 Austria Belgium Czech Republic France Germany OECD high income Details – Resolving Insolvency in Austria Indicator Answer Explanation Proceeding liquidation Mirage management has to initiate either insolvency proceedings or reorganization (after an proceedings within 60 days after the company becomes insolvent. Management is likely to attempt at apply for reorganization proceedings with self-administration, as it will allow them to reorganization) continue managing day-to-day operations of the business. However, one of the conditions of this proceeding is that creditors must be repaid at least 30% of the debt within two years, which is not possible in case of Mirage. Therefore, BizBank will vote against the plan and the proceedings will be converted into liquidation under Article 167 of the Insolvency Act. Outcome going concern Mirage is a viable business and it is likely that it will be sold as a going concern and will continue operating under new ownership. Time (in years) 1.1 Mirage management will file for reorganization proceedings with self-administration within 60 days after Mirage becomes insolvent. Together with the application, it must file a Page 60   Austria Belgium Czech Republic France Germany OECD high income Doing Business 2018 Austria Details – Resolving Insolvency in Austria Indicator Answer Explanation Proceeding liquidation Mirage management has to initiate either insolvency proceedings or reorganization (after an proceedings within 60 days after the company becomes insolvent. Management is likely to attempt at apply for reorganization proceedings with self-administration, as it will allow them to reorganization) continue managing day-to-day operations of the business. However, one of the conditions of this proceeding is that creditors must be repaid at least 30% of the debt within two years, which is not possible in case of Mirage. Therefore, BizBank will vote against the plan and the proceedings will be converted into liquidation under Article 167 of the Insolvency Act. Outcome going concern Mirage is a viable business and it is likely that it will be sold as a going concern and will continue operating under new ownership. Time (in years) 1.1 Mirage management will file for reorganization proceedings with self-administration within 60 days after Mirage becomes insolvent. Together with the application, it must file a reorganization plan, which offers repayment of 30% of creditors' claims within 2 years of when the plan is adopted, an inventory of assets, a current status report and a liquidity plan for the next 90 days. The court will schedule a "reorganization hearing" where creditors representing 50% of the total outstanding debt, as well as the simple majority of creditors present at the hearing must vote in favor of the plan for it to be adopted. As it is not possible under the case assumptions that Mirage will be able to repay 30% of the claims with 2 years, the plan will be rejected. At that time, reorganization proceedings will be continued as bankruptcy proceedings. During bankruptcy proceedings, the court will appoint a receiver who will manage the debtor's assets. The court will hold several hearings, including the general creditors meeting right after the opening of the bankruptcy proceedings, the examination hearing, where the receiver will acknowledge or reject creditors' claims, and the reporting hearing, where the receiver will report on the status of the proceedings. At the reporting hearing, the receiver will report on the pre-requisites for the sale of the business. Assets will probably be sold out of court by the receiver. After the assets are sold, the receiver will present a statement of accounts. Cost (% of 10.0 The majority of the expenses will be comprised of attorneys’ fees (5-8% of the value of the estate) estate) and fees of insolvency administrator (1-2% of the value of the estate), as well as payments to other professionals involved in the proceedings, such as accountants and other professionals (1-2%) of the value of the estate. Recovery rate (cents on the 80.0 dollar) Details – Resolving Insolvency in Austria – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 11.0 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le Page 61   dollar) Doing Business 2018 Austria Details – Resolving Insolvency in Austria – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 11.0 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be complied with Management of debtor's assets index (0-6) 5.5 Does the insolvency framework allow the continuation of contracts supplying essential Yes 1.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit Yes 1.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (a) Yes over all 0.5 pre- commencement creditors, secured or unsecured Reorganization proceedings index (0-3) 1.0 Which creditors vote on the proposed reorganization plan? (b) Only creditors 1.0 whose rights are a ected by the proposed plan Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated Page 62   equally? Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive Doing at least as Business much as 2018 what they would obtain in a liquidation? Austria Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 2.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial Yes 1.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to Yes 1.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost Page 63   (i) notice period for redundancy dismissal; (ii) the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Austria Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Details – Labor Market Regulation in Austria Answer Hiring Page 64   Fixed-term contracts prohibited for permanent tasks? No days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Austria Details – Labor Market Regulation in Austria Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single xed-term contract (months) No limit Maximum length of xed-term contracts, including renewals (months) No limit Minimum wage applicable to the worker assumed in the case study (US$/month) 1590.5 Ratio of minimum wage to value added per worker 0.3 Maximum length of probationary period (months) 1.0 Working hours Standard workday 8.0 Maximum number of working days per week 5.5 Premium for night work (% of hourly pay) 67.0 Premium for work on weekly rest day (% of hourly pay) 100.0 Premium for overtime work (% of hourly pay) 50.0 Restrictions on night work? Yes Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 25.0 Paid annual leave for a worker with 5 years of tenure (working days) 25.0 Paid annual leave for a worker with 10 years of tenure (working days) 25.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 25.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? Yes Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? No Page 65   Third-party Doing approval Business 2018 if nine workers are dismissed? Austria No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? Yes Priority rules for reemployment? Yes Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 2.0 Notice period for redundancy dismissal for a worker with 5 years of tenure 2.0 Notice period for redundancy dismissal for a worker with 10 years of tenure 2.0 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 2.0 Severance pay for redundancy dismissal for a worker with 1 year of tenure 0.0 Severance pay for redundancy dismissal for a worker with 5 years of tenure 0.0 Severance pay for redundancy dismissal for a worker with 10 years of tenure 0.0 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 0.0 Job quality Equal remuneration for work of equal value? Yes Gender nondiscrimination in hiring? No Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 112.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? Yes Minimum contribution period for unemployment protection (months)? 12.0 Business Reforms in Austria In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Austria implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2015 Starting a Business: Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the paid-in minimum capital requirement, and by lowering notary fees. DB2012 Resolving Insolvency: Austria passed a new law that simpli es restructuring proceedings and gives preferential consideration to the interests of the debtors. Page 66   Minimum contribution period for unemployment protection (months)? 12.0 Doing Business 2018 Austria Business Reforms in Austria In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Austria implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2015 Starting a Business: Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the paid-in minimum capital requirement, and by lowering notary fees. DB2012 Resolving Insolvency: Austria passed a new law that simpli es restructuring proceedings and gives preferential consideration to the interests of the debtors. DB2011 Registering Property: Austria made it easier to transfer property by requiring online submission of all applications to register property transfers. DB2009 Enforcing Contracts: Austria made enforcing contracts easier by making electronic ling mandatory in civil matters and thereby increasing the e ciency of proceedings. DB2008 Trading across Borders: Austria made trading across borders easier by introducing an electronic customs clearance system and a risk-based inspection system. Page 67   Trading across Borders: Austria made trading across borders easier by introducing an electronic customs clearance system and risk-based aDoing inspection Business system. 2018 Austria Page 68