Austria: Interest-limitation rule in proposed legislation; extended tax relief (COVID-19)

Austria: Interest-limitation rule proposed legislation

Recent tax developments in Austria include the following:

  • Draft legislation to implement an interest limitation rule in Austrian corporate income tax law, as provided by the EU Anti-Tax Avoidance Directive (ATAD), has been submitted to the Austrian parliament. Most of the options set forth by the EU Directive generally would be applied in a manner that would benefit corporate taxpayers. It is expected that this legislation, if enacted, would be effective and applicable beginning from 1 January 2021.
  • Several tax relief measures provided in response to the coronavirus (COVID-19) pandemic have been extended, such as:
    • The ability to apply for a deferral of tax payment until 31 March 2021
    • A reduction of the value added tax (VAT) rate to 5% for certain specific products
    • A VAT exemption for the delivery or import of COVID-19 vaccines
  • Measures regarding “ecological tax reform” were submitted to the Austrian parliament, and would provide for higher taxes for the acquisition of cars (as from 1 July 2021) and an exemption for railway companies from the tax on electricity for self-generated “green” electricity.

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

Markus Vaishor | + 43 1 31332 3652 |

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