Austrian Federal Tax Code (FTC) – Increase of deferral interest as of 1 July 2024

If deferred payments (deferrals and instalments) for tax liabilities were requested and approved, deferral interest will be levied (section 212 para. 2 FTC). Deferral interest (for federal taxes) below EUR 50.00 are not be assessed.

Due to the COVID-19 pandemic, a “reduced deferral interest rate” of 2 percentage points above the base interest rate is effective since 1 February 2022 (section 323c para. 13 FTC). The reduced interest rate applies only until 30 June 2024. Therefore, the “normal” interest rate for deferred payments amounting to 4.5% p.a. above the base interest rate is again applicable as of 1 July 2024.

As a result, the effective tax rate – taking into account the current base interest rate – will increase from most recently 5.88% to 8.38%.

Also for ongoing deferred payments (approved already before 30 June 2024), the higher interest rate applies as of 1 July 2024.