Tax issues for international companies in Austria
During the COVID-19 pandemic, the BMF (Austrian Ministry of Finance) has paid out several aids in the form of COVID-19 subsidies to companies pursuant to EU state aid law via the COVID-19 Finanzierungsagentur des Bundes GmbH (COFAG). In the course of implementation in Austria, the design of the ceilings for state aid pursuant to section […]
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The EU introduced the Public Country-by-Country Reporting (CbC Report, or CbCR) Directive in November 2021 by which a vast number of multinational enterprises (MNEs) in the member states are obliged to publicly display corporate income tax data. Austria published a first draft of implementing this Directive into Austrian tax law in April 2024. While many […]
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By decree dated 8 August 2023, Russia suspended the application of most parts of the double taxation agreement (DTA) Austria-Russia. After Austria successfully and congruently also suspended the agreement at the beginning of December 2023, the Austrian tax authorities published a decree on the effective date of the suspension and the unilateral elimination of the […]
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In a letter to the Austrian Chamber of Tax Advisers and Public Accountants (KSW) on 26 April 2024, the Ministry of Finance (BMF) commented on the possibility to opt for taxation in section 6 para. 2 Austrian VAT Act (hereinafter UStG) in connection with the sale of the property in the case of a sublease. […]
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The EU Deforestation Regulation (EU) 2023/1115 (EUDR) enters gradually into force as at 1 January 2025. Without prior submission of a due diligence statement, companies are not permitted to place the respective products on the market or to export them. The EUDR replaces the EU Timber Regulation (EU) 995/2010, which is currently in force. It […]
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The VwGH (27/03/2024, Ro 2023/13/0018) has largely confirmed ruling of the tax court at first instance and confirmed that the current law conflicts with CJEU case law and EU primary law (see our newsletter), but has solved the technical aspects of the income attribution in such a “sister” tax group differently. Facts and circumstances A […]
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According to the Austrian Administrative Supreme Cout (“VwGH”) the Austrian tax group regime is full set of rules, which prevails as lex specialis over the general rule for the loss utilization. Therefore the concurrent application of the general final loss utilization rules for shares were rejected by the recent case law in case of non-EU/EEA […]
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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 […]
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No consensus reached by ECOFIN on 14 May 2024 on the compromise proposal On 8 May 2022, the European Commission submitted a draft for a Council Directive on the initiative “VAT in the Digital Age” (ViDA) including the long-awaited proposals for modernising VAT rules in the EU. In general, the proposal for the Council Directive […]
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On 3 May 2024, the Austrian Ministry of Finance (BMF) published a draft of the AbgÄG 2024 (Austrian Tax Amendment Act 2024; AbgÄG 2024). This draft includes, in particular, the following significant amendments: Income tax With the AbgÄG 2023, contributions of a partner into its partnership are treated two- sided for income tax purposes: Whilst […]
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