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Austria: CFC rules finalized, other tax developments

Austria: CFC rules finalized, other tax developments

The KPMG member firm in Austria has briefly summarized tax developments from January to March 2019, including:


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  • Ordinance on application of the final version of the CFC rules was published, reflecting certain changes from the draft version with respect to the calculation of the effective tax rate, determination of the relevant threshold for passive income, and the substance requirements.
  • The federal finance court issued a judgment in a case concerning re-qualification of an up-stream loan as a “hidden distribution.”
  • A decision was released by the federal finance court on the withholding tax qualification of deemed distributions.
  • The federal finance court affirmed the non-deductibility of costs for a bank guarantee connected to the acquisition of a shareholding.
  • New procedures for refunds of withholding tax reflect changes.
  • An update on Austria’s network of income tax treaties affected by the multilateral instrument (MLI) indicates that the first treaties will come into effect as of 2019.
  • The federal finance court decided that the sale of real property can qualify as a trade, regardless of the taxpayer’s intention at the time when the property was acquired.

These and other items are included in a March 2019 report [PDF 354 KB] prepared by the KPMG member firm in Austria.

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