WTS in Austria | ICON Wirtschaftstreuhand GmbH

On 1 June 2022, the Austrian Ministry of Finance (MoF) issued a statement (EAS 3436), saying that it is changing its understanding of how certain IT services are qualified in the double tax treaty (DTT) with China.

The Austrian tax reform 2022 (Abgabenänderungsgesetz 2022 –AbgÄG 2022) brings various changes to the taxation of investment income.

The new info from May 5, 2022 presents the current legal opinion of the Austrian tax author­ities with regard to bilateral MAP and AP.

In a legal opinion, the “BMF” has explained under which circumstances a permanent establishment is triggered by home office activities.

Uncertainties relating to the determination of the profits attributable to a construction/installation permanent establishment (PE) are a substantial tax-related project risk for companies within the plant construction sector.

The Austrian VAT regulations (§ 3 (8a) VAT Law) give an example of how to correctly handle such distance sales of imported goods, which has been adapted to the customs provisions

Section 4 of the Austrian TP Documentation Law (VPDG) contains a notification obligation in connection with CbCR.

In its decision of 13 January 2021 (Ro 2018/13/0003), the Austrian Supreme Administrative Court decides the question whether a US Trust is eligible for withholding tax refund on Austrian profit distributions.

Austria is facing new regulatory requirements because of a recent ECJ decision which has led to a new treatment of rental turnover of foreign investors.

At the beginning of November 2021, the Austrian Ministry of Finance published a draft bill on the eco-social tax reform 2022 which includes new rules for the taxation of income from crypto currencies.

On 7 October 2021, the Austrian Federal Ministry of Finance published the final version of the Austrian Transfer Pricing Guidelines (Austrian Guidelines 2021). In 2010, the Austrian tax authorities published the transfer pricing guidelines based on the OECD Guidelines from 2010 for the first time.

The Austrian Federal Court has recently ruled that crypto mining cannot be deemed as an economic activity for VAT purposes.

It remains unclear as to how the taxpayer can successfully request the granting of interest.

VAT exemption for the management of special investment funds – Services provided by a third party – CJEU joined cases C-58/20, K and C-59/20, DBKAG, dated 17 June 2021.

The Austrian Administrative Supreme Court (Verwaltungsgerichtshof) had to deal with a trademark licensing between Malta and Austria. The Austrian trading company MCo had demerged its business and real estate to the Austrian company XCo in 2007. The trademarks stayed with MCo.

In Austria, the draft of the revised Austrian Transfer Pricing Guidelines 2020 was published. Our Austrian colleagues outline the changes and consequences.

Limitations on the refund of withholding tax on leasing of personnel remunerations

Austria made a U-turn and abolished the wage withholding tax for foreign employers just introduced at the start of last year.

The Austrian tax administration takes a “facts and circumstances-approach” to assess whether home office work creates a permanent establishment (PE) for the foreign employer.

An overview of measures introduced in implementation of the EU directive on tax dispute resolution mechanisms.

Section 48 of the Federal Fiscal Code (BAO) allowed for the unilateral elimination of international double taxation

Regarding the measures planned for 2019, a bill has been filed in early July 2019 and a decision of the national assembly is expected in September

The relevant regulations that foreign companies have to comply with in Austria are regulated in the “Wage and Social Dumping Control Act”

The monitoring will be evaluated on an ongoing basis and on 31 December 2024 an evaluation report will be presented

The Express Answer Service (EAS) offers taxpayers the opportunity to post questions of interpretation regarding international tax matters to the MoF

Since 1.1.2019 applicants for refund of Austrian withholding taxes have been obliged to use an electronic pre-application

From July 1, 2019 the advance ruling must be issued within two months of the application being submitted. 

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Shortlisted with another nomination as “Austria Transfer Pricing Firm of the Year“

The deduction of incidental acquisition costs for private investors is not possible in case the special rate of 27.5 percent is applicable