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Amendments to Austrian 2011 Tax Law Summarised

Austria

Taxand Austria discusses the most important amendments to the 2011 tax law. The key tax changes impacting taxpayers are listed below:

  • A notification requirement was introduced for offshore commission payments exceeding EUR 100,000.
  • A 25% withholding tax is levied, if there is an insufficient disclosure of the recipient of a payment.
  • The deduction of financing costs for the acquisition of shareholdings within corporate groups was restricted.
  • The energy tax rebate is now restricted to manufacturing enterprises. Up until this point it was also applicable to service enterprises. An approval of the European Commission is outstanding.
  • Stamp duty on loans and credit arrangements was abolished without replacement.
  • The relative statute of limitation for tax evasion was extended to 10 years.
  • The absolute statute of limitation was extended to 15 years.
  • An air travel levy ranging from EUR 8 (short range destinations); EUR 20 (mid range destinations) to EUR 35 (long range destination) per ticket was introduced.
  • The turnover threshold regarding quarterly VAT advance return amounts to EUR 100,000.
  • An "Advance Ruling" regime was introduced for corporate restructuring, group taxation or transfer pricing issues, but requires the payment of administrative fees ranging from EUR 1,500 to EUR 20,000.
  • Tax fraud was introduced as a new tax offence under criminal law.
  • The evasion of employer contributions is qualified as tax evasion.
  • The rules regarding amended returns and the self disclosure were substantiated.
  • Although Austria has a strict banker's confidentiality, tax authorities may be granted access to banking data where tax offences are suspected. To overrule the banker's confidentiality, a
    notice, issued by the tax authority, is now requested.
  • A tax police was introduced.

 

Your Taxand contact for further queries is:
Dr. Bernhard Vanas
T. +43 1 533 86 33 900
E. bernahard.vanas@taxand.at

Taxand's Take

Key areas taxpayers should consider the impacts of are:

  • The deduction of financing costs for the acquisition of shareholdings within corporate groups was restricted.
  • Stamp duty on loans and credit arrangements was abolished without replacement.
  • An "Advance Ruling" regime was introduced for corporate restructuring, group taxation or transfer pricing issues.

Taxand's Take Author

Bernhard Vanas
Austria