Tax & Financial Insights
Stay informed about Austrian tax regulations, business matters and financial developments with practical insights from TAX AUSTRIA.
TAX & BUSINESS
Distinction between discretionary and necessary private assets
Land can be included in the balance sheet as discretionary business assets if this is beneficial to the business.
TAX & BUSINESS
Changes to the Real Estate Transfer Tax – Introduction of a Re‑zoning Surcharge
The National Council has approved the extension of the real estate transfer tax liability and the introduction of a re‑zoning surcharge. The new rules will take effect from 1 July 2025.
TAX & BUSINESS
NoVA exemption for light commercial vehicles
As part of the relief package for small and medium‑sized enterprises, the National Council decided on 16 June 2025 to abolish the standard consumption tax (NoVA) for light commercial vehicles of class N1 with a maximum authorised total weight of up to 3.5 tonnes from 1 July 2025.
TAX & BUSINESS
New “Further Training Period”
The Ministerial Council presented the key points of the “Further Training Period”, which is to become effective from 1 January 2026.
TAX & BUSINESS
Prohibition of Deductions for Interest and Royalties within a Group
With regard to payments of interest and royalties to group companies, a deduction prohibition applies if these are subject to “low taxation” in the receiving entity. The Federal Fiscal Court, however, allowed the interest deduction.
TAX & BUSINESS
Tax‑free fixed‑cost subsidy excludes business expenses
Companies received various support measures during the COVID‑19 pandemic, such as fixed‑cost subsidies. As these are exempt from income tax, the related business expenses are not deductible for tax purposes.
TAX & BUSINESS
Municipal tax liability for substantially involved shareholder‑managing directors
For fees paid to a substantially involved shareholder‑managing director of a GmbH, the company must pay municipal tax even if the director outsources his services to his sole proprietorship and invoices the company under a work contract.
VAT
Input Tax Deduction on Invoices Without VAT Indication
If a foreign entrepreneur fails to register for VAT in Austria and does not show VAT on its invoices, it still owes VAT in Austria.
TAX & BUSINESS
Interest on COFAG Repayment Claims
The Federal Finance Court (BFG) has ruled that the interest on COFAG repayments by the tax office from the date of the original disbursement is lawful.
TAX & BUSINESS
Real estate transfer tax on the reversal of a land purchase contract
Anyone who reverses a land purchase contract can, under certain conditions, reclaim the real estate transfer tax already paid. But what happens if the property is sold directly to a third party after the reversal?
TAX & BUSINESS
Interim tax for private foundations
Private foundations are a popular instrument for asset management and succession planning. But private foundations also have to pay tax.
VAT
Major repairs in a VAT‑exempt disposal of a building
To avoid disputes with the tax office over input tax that must be corrected, you should promptly document renovations in the building sector and clarify in advance whether they constitute a major repair.
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