Minimum Tax Act (MinBestG) published in the Austrian Federal Law Gazette (BGBl)

Just in time for the turn of the year, the Minimum Tax Act was published in the (digital) Austrian Federal Law Gazette I on 30 December 2023, thus completing the legislative process.

Overview

The statutory provisions entered into force on 31 December 2023 and are applicable to financial years beginning on or after 1 January 2024. The published act essentially corresponds to the submitted consultation draft. Minor changes to the wording of the act and the explanatory notes are only made for the purpose of clarification.

For further details on the key points of the Minimum Tax Act see our newsletter dated 4 October 2023: Austrian Ministry of Finance (BMF) publishes a consultation draft for a Minimum Tax Act (MinBestG)

Impact on the financial statements 2023

In connection with the Minimum Tax Act, changes were also made to the Austrian Company Code (UGB), which are applicable to financial years ending after 30 November 2023:

• • To reduce complexity, a mandatory exemption from the recognition of deferred taxes resulting from the application of the Minimum Tax Act – as well as comparable foreign laws – is introduced.
  • In addition, disclosures on the expected impact of the (future) minimum tax must be provided in the notes to the financial statements. Those disclosures already have to be made in the financial statements as at 31 December 2023.

In connection with the impact of the minimum tax on disclosures in the notes to the financial statements prepared according to UGB, we also refer to the expert information issued by the Expert Committee for Corporate Reporting (Fachsenat für Unternehmensberichterstattung) on 30 January 2024.

Outlook

The implementation of the requirements of the Minimum Tax Act poses a major challenge for affected company groups and requires combined expertise from various departments of the company, such as tax law, accounting, process management and IT.

Our interdisciplinary Pillar II team will of course be happy to provide support during implementation. For further information refer to our Pillar II micro page (in German only).