Austria: Interest on group transactions; real estate transfer tax changes

Austria: Tax treatment on group transactions

The KPMG member firm in Austria prepared a report that discusses the following tax developments:

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  • Interest expenses paid by the group parent company for debt provided by a group member in order to acquire a participation formally from an affiliated entity, but indirectly from a third party, are not tax deductible.
  • Changes to the Austrian real estate transfer tax are effective as from 1 January 2016.
  • A merger of a tax group parent company as the transferring company into a non-group company leads to the dissolution of the tax group.
  • A new decree was issued regarding the item-by-item recording, the cash register, and voucher issuing obligations.
  • The Court of Justice of the European Union issued a judgment that concerning a “mixed-use building,” input value added tax (VAT) is allocated to the respective sales to determine the proportion. 
  • Numerous exemptions from taxes and social security contributions are subject to a condition that the benefit must be made available to, at a minimum, a group of employees.
  • New legislation imposes a range of obligations on companies sending their staff to Poland.


Read a September 2016 report [PDF 311 KB] prepared by the KPMG member firm in Austria

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