Austria

Corporate - Significant developments

Last reviewed - 23 June 2022

Due to the worldwide corona pandemic, the government has implemented various measures. See Incentives related to COVID-19 in the Tax credits and incentives section for more information.

On 7 January 2021, the COVID-19 Tax Measures Act ('COVID-19-Steuermaßnahmengesetz') was published in the Austrian Federal Gazette. The COVID-19 Tax Measures Act includes numerous measures with regard to income taxation (e.g. interest limitation rules, see Earnings based interest limitation in the Deductions section for more information), duties, and tax deferrals.

On 7 January 2021, the Federal Act Requiring Appropriate Tax Conduct for Federal Funding due to the COVID-19 Pandemic ('Bundesgesetz, mit dem Förderungen des Bundes aufgrund der COVID-19-Pandemie an das steuerliche Wohlverhalten geknüpft werden') was published in the Austrian Federal Law Gazette. See Incentives related to COVID-19 in the Tax credits and incentives section for more information.

On 25 March 2021, the 2nd COVID-19-Tax Measures Act ('2. COVID-19-Steuermaßnahmengesetz') was published in the Austrian Federal Law Gazette. The main purpose was the extension of tax deferrals and instalment payments, tax reliefs for home office activities, as well as adaptations of the Investment Premium Act.

On 14 February 2022 the three parts of the "Eco Social Tax Reform Act" ('Ökosoziale Steuerreform') were published in the Federal Law Gazette. The main aim besides the reduction of the corporate income tax and a relief for low and medium incomes is the introduction of a carbon tax as an incentive to reduce climate-damaging behaviour in the future. See Rates of corporate income tax (Körperschaftsteuer) in the Taxes on corporate income section and Environmental taxes and incentives in the Other taxes section for more information. 

The government bill of the Tax Amendment Act 2022 ('Abgabenänderungsgesetz 2022') from 15 June 2022 includes numerous measures, e.g. enhancements of the R&D tax credit, an extension of the 0% VAT rate for protective masks until 30 June 2023, national implementation of the EU Directive DAC 7 (see EU Directive (DAC 7) in the Other issues section for more information). The bill is currently available as consultation draft only and expected to be passed in parliament in mid 2022.