Tax issues for international companies in Austria
The energy costs subsidy is a subsidy programme of the Austrian Federal Government to support energy-intensive companies in Austria in light of currently high energy prices. After the Austrian Federal Government published the first details of its energy costs subsidy guidelines at the end of September 2022 and obtaining the approval of the European Commission […]
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For the first time, in its decision of 7 October 2022, RV/7101680/2022, an Austrian Tax Court had the opportunity to look into the relation between section 9 para. 6 subsec. 7 Austrian Corporate Income Tax Act (KStG) (reduction of subsequent taxation in the event of liquidation) and section 10 para. 3 KStG (assertion of partial […]
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As part of the inflation relief packages, a contribution-exempt and tax-exempt inflation bonus has been introduced for employees subject to wage tax obligations. The inflation bonus does not incur wage tax, social security contributions, severance fund contributions, or non-wage labour costs (employer contribution to the family allowance fund (DB), surcharge to the employer contribution (DZ), […]
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Public awareness of the importance of tax as a contribution to society increases especially in times of crisis. The trend towards greater transparency also means that tax has become an established part of sustainability reporting. With the adoption of the “GRI 207: Tax 2019” standard in December 2019, the Global Reporting Initiative (GRI) defined for […]
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For the Austrian Ministry of Finance (BMF), the ruling of the Austrian Supreme Administrative Court (VwGH) of 23 April 2021 (Ra 2020/13/0089) provided the impetus to conduct a pragmatic overhaul of withholding tax relief in the form of the Ordinance on Withholding Tax Relief for Personnel Leasing. Initial situation As foreign employers are subject to limited […]
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In late September 2022, initial details of the energy costs subsidy were published (see newsletter of 29 September 2022). The relevant guidelines themselves have not yet been published and are currently subject to review by the European Commission (notification procedure). Approval is expected in the coming days. According to the recent press release of the Austrian […]
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Due to the recent increase of the key ECB interest rate by 0.75%, changes to deferral interest, interest for suspension, claim interest (interest for subsequent payments and credits), appeal interest, as well as VAT interest have occurred. The European Central Bank raised its key interest rate with effect from 2 November 2022. Due to the automatic […]
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On 13 October 2022, a members’ bill was tabled for the remedy of the ban on deductions for voluntary severance payments. The Austrian Constitutional Court (VfGH) overturned the ban on deductions for voluntary severance payments in March 2022 and set a deadline for legislative amendments to be carried out by 31 December 2022. Further changes concern, among other […]
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A new decision of the Austrian Supreme Administrative Court (VwGH) (22.6.2022, Ro 2020/13/0004) was recently published regarding the definition of a “fixed place” under tax treaty law. For a fixed place to exist, a taxable person must have power of disposal over it. For Austrian tax purposes, a decisive hallmark of the existence of a […]
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As previously reported in our Tax Newsletter of 14 June 2022, the grace period for the submission of tax returns for 2020 for taxpayers with tax representatives was initially extended by three months (from 31 March 2022) to 30 June 2022 and then again to 30 September 2022. The Austrian Ministry of Finance (BMF) has […]
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