Austria

Corporate - Significant developments

Last reviewed - 30 June 2020

On 1 September 2019, the European Union (EU) Tax Dispute Resolution Act (‘EU-Besteuerungsstreitbeilegungsgesetz’ or EU-BStbG) came into force. See Tax treaties in the Withholding taxes section for more information.

On 22 October 2019, the Tax Amendment Act 2020 (‘Abgabenänderungsgesetz 2020’ or AbgÄG) was published in the Austrian Federal Law Gazette. The main purpose was the implementation of the Digital Tax Act (‘Digitalsteuergesetz’) and the European Reporting Obligation Act (‘EU-Meldepflichtgesetz’ or EU-MPfG) implementing the EU Directive on Administrative Cooperation (DAC 6). See Digital services tax in the Other taxes section and EU Directive on Administrative Cooperation (DAC 6) in the Other issues section for more information.

On 29 October 2019, the Tax Reform Act 2020 (‘Steuerreformgesetz 2020’) was published in the Austrian Federal Law Gazette. See Value-added tax (VAT) in the Other taxes section, Exit taxation in the Income determination section, Payments to foreign affiliates in the Deductions section, and Controlled foreign companies (CFCs) in the Group taxation section for more information.

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 22 June 2020, the Austrian Ministry of Finance has published a draft bill for the Economic Strengthening Act 2020 (‘Konjunkturstärkungsgesetz‘). The main purpose is an introduction of a new degressive depreciation of up to 30% applicable to acquisitions from 1 July 2020, a new loss carryback (i.e. offset of operating losses incurred in 2020 against profits from 2018 and 2019) and a further legal extension of deferrals of tax payments granted under COVID-19.

On 23 June 2020, the Austrian Ministry of Finance has published a draft bill for the new Investment Premium Act (‘Investionsprämiengesetz‘). The investment premium provided in 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.