Changes concerning withholding tax for Software-as-a-Service and Infrastructure-as-a-Service

Under many Austrian double tax treaties, the remuneration for “industrial, commercial or scientific equipment” is treated as royalties subject to withholding tax (WHT). In a change from the previous interpretation, the Austrian Ministry of Finance has now stated that intangible assets (e.g. software) do not fall under the category of “equipment”. This has significant implications […]

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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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Amendment of the Austria-UAE tax treaty

Last summer, Austria signed a Protocol amending the Double Taxation Treaty (DTT) with the United Arab Emirates (UAE) of 2003. The document provides for significant changes in certain areas. The Protocol was ratified in Austria at the end of 2021. In the UAE, government approval for the Protocol has been granted, although final ratification has […]

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New letter ruling on permanent establishments in the case of auxiliary activities within a company group

On 1 June 2021, the Austrian Ministry of Finance (MoF) published EAS (Express Answer Service) 3432. In this letter ruling, the MoF confirmed its previous view that there is only one set of circumstances in which activities, which by their nature constitute preparatory or auxiliary activities, do not lead to the creation of a permanent establishment […]

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