Ordinance on the transfer of interest and EBITDA carryforwards during reorganisations published

An ordinance published on 2 June 2022 (“Zinsvortrags-ÜbergangsV”) provides the legal framework for the transfer of interest and EBITDA carryforwards to the receiving entity in the context of corporate reorganisations. Austrian interest limitation rule in a nutshell According to the Austrian interest limitation rule the deductibility of net interest expense for corporations is limited to 30% […]

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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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