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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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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Almost a year after the publication of the draft Transfer Pricing Guidelines, on 7 October 2021 the Austrian Federal Ministry of Finance has finally issued the new Austrian Transfer Pricing Guidelines (ATPG 2021 or Guidelines). Being an extensive revision of the Transfer Pricing Guidelines from 2010 (TPG 2010), the ATPG 2021 aim at reflecting BEPS-project […]
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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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From 01. January 2020 on, employers of individuals subject to unlimited taxation in Austria are required to withhold Austrian wage tax. However, due to a legislative motion for the planned COVID-19 Tax Measures Act, which was submitted on 20 November 2020, this provision now seems likely to be – retroactively – revoked: Thus, foreign employers […]
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Due to the COVID-19 prevention measures, many employees have for several months been unable to carry out their activities at the location at which they would normally have worked before the pandemic. In cross-border circumstances, this can lead to undesired changes in taxation rights between states – for example, due to the creation of permanent […]
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The measures to control the COVID-19 pandemic have caused severe restrictions on international mobility. In international tax law, this could lead to unintended changes in the right to tax between countries, such as through the creation of a permanent establishment (PE) or a change in the place of effective management for companies operating internationally. The […]
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