Austria

Corporate - Significant developments

Last reviewed - 12 January 2021

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 July 2020, the Federal Law amending the VAT Act 1994 ('Bundesgesetz, mit dem das Umsatzsteuergesetz 1994 geändert wird') was published in the Austrian Federal Law Gazette. See Value added tax (VAT) in the Other taxes section for more information.

On 24 July 2020, the Economic Strengthening Act 2020 (‘Konjunkturstärkungsgesetz‘) was published in the Austrian Federal Law Gazette. The main purpose was an introduction of a new degressive depreciation of up to 30% applicable to acquisitions from 1 July 2020 (see Depreciation and amortisation in the Deductions section for more information), a new loss carryback (i.e. offset of operating losses incurred in 2020 against profits from 2018 and 2019, see Incentives related to COVID-19 in the Tax credits and incentives section for more information), and a further legal extension of deferrals of tax payments granted under COVID-19.

On 24 July 2020, the Investment Premium Act (‘Investionsprämiengesetz‘) was published in the Austrian Federal Law Gazette. The investment premium, provided in the form of a grant (7% or 14% of the eligible costs), intends to support new investments in tangible and intangible depreciable fixed assets at Austrian locations between 1 August 2020 and 28 February 2021.

On 17 December 2020, the Federal Council has resolved the COVID-19 Tax Measures Act ('COVID-19-Steuermaßnahmengesetz'). 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 Interest expenses section for more information), duties and tax deferrals.