Quota system: New extension of deadline for tax returns for 2020

As previously reported in our Tax Newsletter of 14 June 2022, the grace period for the submission of tax returns for 2020 for taxpayers with tax representatives was initially extended by three months (from 31 March 2022) to 30 June 2022 and then again to 30 September 2022. The Austrian Ministry of Finance (BMF) has […]

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VwGH – No provisions for impending losses due to lease expenses of loss-making stores

In a decision of 7 April 2022, Ro 2021/13/0009, the Austrian Supreme Administrative Court (VwGH) endorsed the case law of the German Federal Fiscal Court (BFH). According to this decision, provisions for impending losses arising from disadvantageous lease agreements can only be created if the leased property can no longer be used by the business. Circumstances […]

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Austrian Tax Amendment Act 2022 – government bill published

The government bill for the Austrian Tax Amendment Act 2022 (AbgÄG 2022) was published in mid-June. Confirmation of the final version is expected before the summer recess. The AbgÄG 2022 contains numerous minor adjustments and changes related to income taxation, VAT, and procedural law. Tax changes relating to the previously announced inflation package, particularly the abolition of […]

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Quota system: New extension of deadline for tax returns for 2020

As previously reported in our Tax Newsletter of 16 March 2022, the grace period for the submission of tax returns for 2020 for taxpayers with tax representatives was initially extended by three months (from 31 March 2022) to 30 June 2022. The Austrian Ministry of Finance (BMF) has now extended this period by a further three months […]

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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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Non-deductibility of severance payments from social plans is unconstitutional

In its decision of 16 March 2022, the Austrian Constitutional Court (VfGH) overturned the prohibition of deductions under Sec 20 para 1 subpara 8 Austrian Income Tax Act (EStG) as unconstitutional. This provision prevents the deduction of voluntary severance payments made by the employer to the extent that these exceed the amounts eligible for preferential tax treatment on the […]

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Rising energy costs: Reduction prepayments of individual and corporate income tax

Austrian companies currently face rising energy costs, which may also impact their liquidity in the short term. For this reason, the Austrian Ministry of Finance (“BMF”) stated on 1 April 2022 that it will be possible to simplified reduce prepayments of individual and corporate income tax in administrative terms. The taxpayer must be able to credibly […]

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Quota system: Extended deadline for tax returns 2020

Tax returns (e.g. individual and corporate income tax returns or annual VAT returns) generally have to be submitted by 30 June of the following year (if submitted electronically). The tax authority may extend the deadline for submission of tax returns on a case-by-case basis (discretionary decision) following a substantiated request (individual extension of submission deadline). If […]

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Donating cash and goods for Ukraine – tax issues

The current humanitarian disaster in Ukraine has confronted us all with images and concerns that we in Europe have not had to deal with for many years. However, many people are helping with compassion and humanity, providing support where they can. It is not only individuals who have demonstrated a willingness to help – many […]

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