Austria

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 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 (CIT) 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 Tax Amendment Act 2022 ('Abgabenänderungsgesetz 2022') was published in the Federal Law Gazette on 19 July 2022. The Tax Amendment Act 2022 includes numerous measures, e.g. enhancements of the research and development (R&D) tax credit, an extension of the 0% value-added tax (VAT) rate for protective masks until 30 June 2023, national implementation of the European Union (EU) Directive DAC 7 (see EU Directive (DAC 7) in the Other issues section for more information).

On 27 July 2022, the Business Energy Costs Subsidy Act ('Unternehmens-Energiekostenzuschussgesetz' or UEZG) was published in the Federal Law Gazette. The Act provides for relief for energy-intensive companies for the funding period February 2022 to September 2022. The financial support is granted in the form of a subsidy and will be paid out following successful application and accounting settlement.

On 15 December 2022, the Council of the EU formally adopted the directive ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the European Union. Austria and the other EU member states are obliged to implement the Pillar II rules as regards the effective tax rate of 15% for large-scale groups. The transposition is to be made by 31 December 2023, and the new rules are to be applied as of 1 January 2024.