Austria: Taxation of unrealized capital gains, tax loss carryforwards

Austria: Taxation of unrealized capital gains

Changes to Austrian GAAP, that are effective 31 December 2015, require all businesses to recognize unrealized capital gains for all types of fixed and current assets. Any appreciation is generally fully taxable, and taking into account the 75% loss utilization restriction, “paper profits” could be taxed.

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There is a transition rule for unrealized capital gains until 31 December 2015, in that these only are taxed on realization or at the time another extraordinary depreciation is recognized. 

 

Read a 2015 report prepared by the KPMG member firm in Austria

 

Other topics briefly discussed in this report concern:

  • An update on the cash register duty
  • Revenue allocation in usufruct rights situations
  • Tax loss carryforwards after the tax group is terminated
  • A court case on Austrian profits of foreign group members
  • A case on the treatment of foreign exchange valuations for purposes of determining a foreign tax group member’s results
  • Real estate transfer tax and rules for pooling of shares in real estate-owning companies or partnerships
  • Real estate value for the transfer tax purposes

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