Decree issued by the Austrian Ministry of Finance (BMF) – Decrease of interest rates
Due to the decrease of the main refinancing operations rate by the European Central Bank, the amount of the deferral interest, interest for suspension, claim interest (interest for subsequent payments and credits), appeal interest as well as VAT interest is adjusted in the Austrian Federal Tax Code (FTC). Moreover, the amount of the refund interest is adjusted in the Austrian COFAG Reorganisation and Resolution Act (COFAG-Neuordnungs- und Abwicklungsgesetz, COFAG-NoAG).
The European Central Bank has decided to decrease the key interest rate by 0.25 percentage points on 17 April 2025 and on 5 June 2025 to decrease the key interest rate each by 0.25 percentage points. As adjustments of in total less than 0.50 percentage points since the last adjustment of the base interest rate are not considered, the base interest rate, which is aligned with the main refinancing operations rate, was now adjusted in total by 0.50 percentage points, from 2.03% to 1.53%.
Since 1 July 2024, deferral interest amount again to 4.5% above the applicable base interest rate (see newsletter Austrian Federal Tax Code (FTC) – Increase of deferral interest as of 1 July 2024). Refund interest under state aid law within the meaning of section 16 para. 1 second sentence in connection with section 14 para. 2 subsec. 2 COFAG-NoAG amount to 1% above the base interest rate. The other interest rates reported in this newsletter are uniform 2% above the base interest rate.
Therefore, from 11 June 2025 the effective interest rates in the FTC and COFAG-NoAG are as follows:
| Deferral interest | sec 212 para 2 FTC | 6.03 % |
| Interest for suspension | sec 212a para 9 FTC | 3.53 % |
| Claim interest | sec 205 para 2 FTC | 3.53 % |
| Appeal interest | sec 205a para 4 FTC | 3.53 % |
| VAT interest | sec 205c para 5 FTC | 3.53 % |
| Refund interest | section 16 para. 1 first sentence COFAG-NoAG | 3.53 % |
| Refund interest (under state aid law) | section 16 para. 1 second sentence COFAG-NoAG | 2.53 % |
The corresponding BMF decree on interest rate adjustments dated 6 June 2025 was published on 6 June 2025 in Findok. This replaces the BMF decree of 10 March 2025.
If the above-mentioned interest amounts are below EUR 50.00, they should not be assessed.
