Austria: Tax relief measures, update (COVID-19)

Austria: Tax relief measures, update (COVID-19)

The Austrian government has provided tax and non-tax measures to support the economy in response to the coronavirus (COVID-19) pandemic.


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Among the tax-relief measures:

  • A draft bill before the Austrian Parliament on 13 May 2020 would implement a rescue package for the Austrian restaurant sector and would offer tax incentives for consumption in restaurants.
  • A customs procedure provides a tax exemption for imports concerning delivery of another EU country.
  • A reduction of the value added tax (VAT) rate to 0% for supplies of protective masks supplied after 13 April 2020 and before 1 August 2020.

Read a May 2020 report prepared by the KPMG member firm in Austria

Other tax developments briefly addressed in this report concern the following non-COVID-19-related topics:

  • CJEU: Criteria for assigning the moved supply in a chain transaction
  • Contesting an announcement of a tax audit via Art 299 Austrian Federal General Fiscal Act
  • Austrian Federal Finance Court: Unjustified revision proceedings due to ineffective reference to a tax audit report
  • Austrian Administrative Supreme Court on unlimited tax liability in Austria: Insignificant actual use of the dwelling does not rule out existence of a domicile
  • Austrian Federal Finance Court: Refund for dividend withholding tax not creditable in the residence state is also possible for third country recipients.
  • Austrian Federal Finance Court on the timing of profit recognition in connection with construction cost subsidies
  • Stamp duty for rental contracts for business purposes: Austrian Administrative Supreme Court confirms strict view on limited length of contracts
  • Capital gains from the sale of real property derived by individuals: Austrian Federal Finance Court restricts exemption for owner-occupied houses and apartments in cases of the seller´s principal place of residence
  • Austrian Administrative Supreme Court on real estate transfer tax repayment, refund
  • Austrian Federal Finance Court on “last-minute”-surcharge for voluntary self-disclosures of incorrect monthly VAT-payments

For more information, contact a KPMG tax professional in Austria: 

Markus Vaishor | +43 1 31332 3652 |

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