Austrian Tax Court declares horizontal group to be permissible

In a decision of 31 March 2022 (RV/7104573/2020), the Austrian Federal Tax Court (BFG) has stated – contrary to the wording of Sec 9 Austrian Corporate Income Tax Act (KStG) – that a company group between Austrian affiliates is permissible even if the joint parent company is resident abroad and does not have a branch in Austria. […]

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Remote working simplifications with Germany due to COVID-19 set to expire

The Austrian Consultation Agreement with Germany contains special rules concerning the application of the double taxation treaty, which were introduced due to the pandemic. Accordingly, employers that are resident in Germany would not be deemed to have created a permanent establishment (“PE”) in Austria if an employee who is resident in Austria works from a […]

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Non-deductibility of severance payments from social plans is unconstitutional

In its decision of 16 March 2022, the Austrian Constitutional Court (VfGH) overturned the prohibition of deductions under Sec 20 para 1 subpara 8 Austrian Income Tax Act (EStG) as unconstitutional. This provision prevents the deduction of voluntary severance payments made by the employer to the extent that these exceed the amounts eligible for preferential tax treatment on the […]

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Donating cash and goods for Ukraine – tax issues

The current humanitarian disaster in Ukraine has confronted us all with images and concerns that we in Europe have not had to deal with for many years. However, many people are helping with compassion and humanity, providing support where they can. It is not only individuals who have demonstrated a willingness to help – many […]

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