The Austrian Ministry of Finance in June 2015 published a draft bill regarding provisions under the Austrian tax reform 2015/2016. One of the proposed changes concerns the tax treatment of dividends paid by Austrian companies.
The proposal would affect the determination as to whether a company’s distribution of profits is a qualified dividend (subject to withholding tax) or a repayment of capital (not subject to withholding tax but requiring a reduction of the tax book value of the participation on shareholder level).
The proposal would provide a “sequence” or rule for taxpayers to apply in determining whether a dividend would be qualified from a tax perspective.
Read a June 2015 report prepared by the KPMG member firm in Austria.
This KPMG report also examines other proposals form the 2015/2016 tax reform, included under the following topics:
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