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Austria: Summaries of tax developments (October 2019)

Austria: Summaries of tax developments (October 2019)

The KPMG member firm in Austria has prepared a report providing brief summaries of tax developments for October 2019.


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The topics included in this report and that are briefly discussed concern:

  • New tax laws passed by Austrian parliament, including digital services tax legislation (read TaxNewsFlash).
  • Liabilities not settled until the end of liquidation cannot be deemed to qualify as taxable income of the dissolved company (decision of Austrian Administrative Supreme Court).
  • The ability to treat a qualified interest exceeding 25% of a participation and relating debt  transferred together in course of a spin-off may only apply if the participation is transferred as a “stand-alone.” If, however, the participation is transferred together with a business unit or part of a business unit, the general rule regarding the separation of assets and relating debt applies, regardless of the amount of the participation (decision of Austrian Administrative Supreme Court).
  • Items from the Court of Justice of the European Union (CJEU) concerning:
    • Reduction of the value added tax (VAT) base due to non-payment of instalments of a terminated leasing contract (judgment of CJEU)
    • Transport to one supply within a supply chain primarily based on who bears the risk of the accidental loss of the goods (CJEU Advocate General opinion)
    • Subsidy as consideration from a third party (judgment of CJEU)
  • Draft of the 2019 update to the VAT guidelines published by the Austrian Ministry of Finance.
  • Profits earned by Austrian resident subsidiaries distributed to EU resident parent companies.
  • Changes to Austrian withholding tax refunds.
  • Amendments to Austrian wage tax law.
  • Changes to the basis for the calculation of the real estate value of building rights.

Read an October 2019 report prepared by the KPMG member firm in Austria 

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