Menu
  • Locations
  • Services
  • Experts
  • Hot Topics
  • News & Knowledge
  • Career
  • About us
  • Search
  • Press
  • Events & Webinars
  • Contact
  • Language
  • Berlin
  • Cologne
  • Dusseldorf
  • Erlangen
  • Frankfurt
  • Hamburg
  • Hannover
  • Kolbermoor
  • Munich
  • Nuremberg
  • Regensburg
  • Rosenheim
  • Stuttgart
  • Tax
  • Legal
  • Advisory
  • Industries
  • Digital
  • DAC 6
  • Pillar Two
  • ESG
  • FISG
  • Tax Internal Control Framework
  • Brochures
  • News
  • Newsletter overview
  • Newsletter subscription
  • Overview
  • Culture
  • How we work
  • You&WTS
  • TALENTnetwork
  • Apply now
  • What Makes Us Stand Out
  • Our Clients
  • Our Employees
  • Awards
  • Corporate Responsibility
  • Our Management Team
  • Our Partners
  • Our History
  • Our locations
  • by Topic
  • Digital
  • Environment
  • Social commitment
  • Employee responsibility
  • Diversity
  • Partners Munich
  • Partners Berlin
  • Partners Dusseldorf
  • Partners Erlangen
  • Partners Frankfurt
  • Partners Hamburg
  • Partners Hannover
  • Partners Cologne
  • Partners Kolbermoor
  • Partners Nuremberg
  • Partners Regensburg
  • Partners Rosenheim
  • Partners Stuttgart
  • NOW@WTS
  • Press
  • Events & Webinars
  • Contact
English
German
  • English
  • German
WTS worldwide
  • WTS Global
  • Albania
  • Angola
  • Argentina
  • Armenia
  • Australia
  • Austria
  • Bangladesh
  • Belarus
  • Belgium
  • Benin
  • Bolivia
  • Bosnia & Herzegovina
  • Brazil
  • Bulgaria
  • Burkina Faso
  • Burundi
  • Cambodia
  • Cameroon
  • Canada
  • Chile
  • China
  • Colombia
  • Costa Rica
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Dominican Republic
  • Ecuador
  • Egypt
  • El Salvador
  • Estonia
  • Finland
  • France
  • Georgia
  • Germany
  • Ghana
  • Gibraltar
  • Greece
  • Guatemala
  • Guinea
  • Honduras
  • Hong Kong
  • Hungary
  • Iceland
  • India
  • Indonesia
  • Iran
  • Iraq
  • Ireland
  • Israel
  • Italy
  • Ivory Coast
  • Japan
  • Kazakhstan
  • Kenya
  • Korea
  • Kyrgyzstan
  • Laos
  • Latvia
  • Lithuania
  • Luxembourg
  • Macao
  • Macedonia
  • Madagascar
  • Malaysia
  • Mali
  • Malta
  • Mauritius
  • Mexico
  • Moldova
  • Mongolia
  • Montenegro
  • Morocco
  • Mozambique
  • Myanmar
  • Nepal
  • Netherlands
  • New Zealand
  • Niger
  • Nigeria
  • Norway
  • Pakistan
  • Panama
  • Paraguay
  • Peru
  • Philippines
  • Poland
  • Portugal
  • Puerto Rico
  • Romania
  • Russia
  • Rwanda
  • Saudi Arabia
  • Senegal
  • Serbia
  • Singapore
  • Slovakia
  • Slovenia
  • South Africa
  • Spain
  • Sri Lanka
  • Sweden
  • Switzerland
  • Taiwan
  • Tanzania
  • Thailand
  • Togo
  • Trinidad and Tobago
  • Tunisia
  • Turkey
  • Turkmenistan
  • Uganda
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Uruguay
  • USA
  • Uzbekistan
  • Venezuela
  • Vietnam
  • Zambia
  • Services
    Services

    Learn more about our comprehensive services in the area of tax as well as relevant legal advice and financial advisory services.

    Read more
    Tax Legal Advisory Industries Digital
  • Experts
    Experts

    Our employee structure combines the know-how of industry, consulting, financial management and IT in a very special way. Learn more about our experts.

    Read more
  • Hot Topics
    Hot Topics

    Overview of the current "hot topics" in the tax industry and how we can support with individual questions

    Read more
    DAC 6 Pillar Two ESG FISG Tax Internal Control Framework
  • News & Knowledge
    News & Knowledge

    Here you will find the latest news and specials on all aspects of taxation, digitization and financial & deal advisory.

    Read more
    Brochures News Newsletter overview Newsletter subscription
  • Career
    Career

    Here you will find an overview of our development and qualification offers as well as employee offers and open positions. We look forward to getting to know you.

    Read more
    Overview Culture How we work You&WTS TALENTnetwork
    Apply now
  • About us
    About us

    Here you will find general information about the structure, special characteristics and history of WTS.

    Read more
    What Makes Us Stand Out Our Clients Our Employees Awards Corporate Responsibility
    Our Management Team Our Partners Our History Our locations
  • Search

Tax Control Framework in Austria

Cooperative compliance - covering domestic and foreign tax requirements

Key Facts
No domestic legislation exists requiring taxpayers to install a Tax Control Framework (TCF). The "Horizontal Monitoring" (HM) offered to Austrian in 2011 corporate taxpayers was on voluntary basis
MoF has already announced that future participation in the HM programme will require corporate taxpayers to have introduced an effective TCF
Cooperative compliance has to cover domestic and foreign tax requirements in order to avoid penalties for the enterprise, its managers and employees
Digitisation: most of the filings, tax returns and appeals to be done by the Austrian taxpayer have to be communicated electronically via “FinanzOnline”

National rules in respect of a Tax Control Framework, differences due to size

In May 2016, the OECD released a report on “Co-operative Tax Compliance” outlining the essential features of a Tax Control Framework (TCF) and the tax authorities’ expectations with respect to a TCF. Although the Austrian Ministry of Finance is very anxious to follow the OECD’s recommendations, currently no domestic legislation exists requiring taxpayers to install such an instrument.

However, following the Netherlands example, the Austrian MoF had already introduced an enhanced relationship called “Horizontal Monitoring” (HM) in 2011 which was offered to Austrian corporate taxpayers on a voluntary basis. To participate in this process of continuing and permanent tax auditing, the existence of an internal TCF was required or at least the willingness to develop such a tool in cooperation with the tax authorities in the course of the monitoring process. In fact, this requirement limited the participants to large Austrian corporate groups. Between 17 June 2011 and 30 June 2016, a total of 17 Austrian corporate groups covering 249 tax IDs participated in the HM. An evaluation report about experiences collected by the tax authorities is available for download at: https://www.bmf. gv.at/services/publikationen/BMF_Evaluationsbericht_Horizontal_Monitoring. pdf?5s3qa1.

Benefits for the taxpayer resulting from a TCF

The final evaluation of the HM project, which came to its preliminary end in mid-2016, came to the conclusion that this form of enhanced cooperation brings more legal certainty for taxpayers, promotes tax compliance, can reduce compliance costs and secures contemporary and lawful collection of taxes in favour of the state budget. Between 2011 and 2016, the HM process was not set by law but based on a manual developed by the MoF together with the Federation of Austrian Industries and the Chamber of Austrian Auditors and Tax Consultants. The MoF is currently working on HM legislation in order to create a legal basis for the HM process in the future. It is expected that such legislation will be passed by the end of 2017.

Are the tax authorities bound to check or consider the TCF? If yes, also for past years?

The MoF has already announced that future participation in the HM programme will require corporate taxpayers to have introduced an effective TCF. So it is to be expected that a taxpayer’s TCF will be examined by the tax auditors before the HM starts. In the course of tax audits, an existing effective TCF can avoid the application of financial penal law.

Cooperative compliance – is it agreed by the fiscal authority? Cross-border applicability of cooperative compliance

Cross-border activities of Austrian enterprises are subject to Austrian taxation and, in many cases, to foreign taxation as well. Experience shows that non-compliance with tax obligations abroad may result in sensitive penalties for the enterprise, its managers and employees. In practice, “cooperative compliance” has to cover both domestic and foreign tax requirements in order to avoid such impacts.

Are there any rules regarding digitisation of tax processes?

In Austria there are no special regulations as far as digitisation of TCF is concerned. However, most of the filings, tax returns and appeals to be done by the Austrian taxpayer, including tax returns and assessment notices issued by the tax authorities, have to be communicated electronically via “FinanzOnline” based on a particular regulation released by the MoF. This online platform can be accessed by visiting http://finanzonline.bmf.gv.at after the taxpayer has duly registered.

Publications
Tax Control Framework
All Publications
Articles you might be interested in

WTS is continuing the expansion of its multi-award-winning VAT practice with the addition of Christoph Gach

WTS further expands its VAT practice with the addition of Christoph Gach
Read more

Changes in international tax law and country-specific tax law developments with respect to cross-border transactions

Global International Corporate Tax Newsletter #1/2023 now available
Read more

Temporary and permanent reliefs bring simplifications.

OECD publishes Safe Harbours for Pillar Two
Read more

Contact us today

Do you have any questions about our services or WTS? Please let us know. Please fill in our short contact form. We will get in touch with you as soon as possible.

Contact
Services
  • Tax
  • Legal
  • Advisory
  • Industries
  • Digital
Hot Topics
  • Sustainability Services
  • Pillar Two
  • DAC 6
  • Tax Internal Control Framework
  • FISG
Career
  • Apply now
  • Culture
  • How we work
  • You&WTS
  • TALENTnetwork
News & Knowledge
  • Newsletter overview
  • Newsletter subscription
  • Brochures
About us
  • What Makes Us Stand Out
  • Our Clients
  • Corporate Responsibility
  • Awards
  • Experts
© 2023 WTS Company Information Disclaimer Data Protection Statement