Mandatory wage tax deduction for employers without a PE for wage tax purposes in Austria about to be revoked?

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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Austrian Ministry of Finance on permanent establishment issues related to the COVID-19 pandemic

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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COVID-19 and international tax law: OECD on permanent establishments and residence status

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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