Further Queries

Following a decision of the Austrian Administrative Supreme Court, the Austrian Ministry of Finance changed its view concerning the liquidation of companies that belong to a tax group:


Previous view


  • A corporation in liquidation cannot enter a tax group as group member or group parent.
  • In case a group parent is liquidated, the tax group is terminated upon deregistration of the group parent in the commercial register (retroactive termination if the three years minimum period is not fulfilled)
  • When a group member is liquidated, the liquidation result will be attributed to the group parent, provided that the 3 year minimum period is fulfilled (i.e. if it has been a group member of for at least 2 full financial years and the liquidation process comprises at least 12 month)

Amended view


  • If the group parent enters into liquidation, the tax group will be terminated as of the end of the financial year prior to the year the liquidation proceedings of the group parent started
  • If a group member enters into liquidation, it does not lead to the withdrawal of this group member from the group, provided that the minimum period is fulfilled (no change to previous view). Group members that are held by the dissolved group member leave the tax group as of the end of the financial year prior to the year the liquidation proceedings of the respective group member started

The new view of the Austrian Ministry of Finance is applicable for all group companies that are liquidated after 6 July 2015.

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Taxand's Take

In order to avoid negative tax consequences in connection with the liquidation of a group company the timing of the liquidation as well as possible pre-liquidation reorganisations or restructurings should be analysed in advance

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Article tags

Austria | International Tax

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