With our newsletter you will never miss the current

HR Topics und Events

icon Sign up for free

Potentially higher income tax burden through amendments to the Double Taxation Treaty between Austria and the United Arab Emirates

On 1 July 2021 Austria and the United Arab Emirates (UAE) have signed a protocol amending several key provisions of the Double Taxation Treaty. The most significant changes are made to Article 24 of the Double Tax Treaty. Currently this Article states that the double taxation of Austrian tax residents is avoided by exempting the […]

more

New letter ruling on permanent establishments in the case of auxiliary activities within a company group

1 June 2021, the Austrian Ministry of Finance (MoF) published EAS (Express Answer Service) 3432. In this letter ruling, the MoF confirmed its previous view that there is only one set of circumstances in which activities, which by their nature constitute preparatory or auxiliary activities, do not lead to the creation of a permanent establishment […]

more

New Austrian legislation on homeworking and its implications for payroll

On 24 February 2021, the Austrian National Council approved the 2nd COVID-19 Tax Measures Act, which provides for non-taxable reimbursement of costs by the employer and a flat rate deduction for business expenses for the employee if homeworking (so-called “home office”) has been agreed. After a year of working from home due to COVID-19, employees or works […]

more

Austrian government confirms retroactive change to wage tax deduction for foreign employers

As reported in an earlier article (see blog post from 27.11.2020), the Austrian government announced in December that the wage tax withholding obligation for employers without a wage tax PE in Austria would be repealed with retroactive effect. In accordance with this draft, under the new rules these employers will no longer be required to […]

more

Is Home Office the new Trojan Horse?

When the COVID-19 pandemic swept across Europe, more than a few companies faced a challenge that they had put off, or rather overslept, for far too long in the course of the highly discussed  digital transformation: Am I able to let all of my employees work from home ? Assuming that you have provided your […]

more

Post-Brexit: Social security implications for cross-border employee assignments after the end of the transition period and recommended actions for employers

Situation to date The United Kingdom left the European Union on 31 January 2020. A Withdrawal Agreement was agreed between the UK and the EU, which entered into force on 1 February 2020, and established the terms of the UK’s orderly departure from the EU. The Withdrawal Agreement provides for a transition period, during which the EU […]

more

Mandatory wage tax deduction for employers without a PE for wage tax purposes in Austria about to be revoked?

From 01.01.2020 on, employers of individuals subject to unlimited taxation in Austria are required to withhold Austrian wage tax. However, due to a legislative motion for the planned COVID-19 Tax Measures Act, which was submitted on 20 November 2020, this provision now seems likely to be – retroactively – revoked: Thus, foreign employers without a PE […]

more

Current information on deferral of social security contributions

Employers who have been affected by business restrictions or closures due to the Austrian government directive, Austrian Federal Law Gazette (BGBl) II 2020/96, or a ban on access under the Austrian Epidemics Act (BGBl II 2020/74), have benefited since March 2020 from an automatic, interest-free deferral of payment of social security contributions for the contribution […]

more

Austrian Federal Financial Court (BFG) ruling on exemption with progression in state of source

A recent decision of the Austrian Federal Financial Court (BFG) considered the question as to whether foreign income must be taken into account in Austria under an “exemption with progression” clause even if Austria is not the state of residence under treaty law. The BFG takes the view that in cases of unlimited tax liability […]

more

BMF information on the application and interpretation of Double Tax Treaties

The COVID-19 pandemic has implications for the taxation of income of cross-border workers, as the allocation of taxation rights under tax treaties depends, among other things, on where the the activities are carried out. The duration of activities and the length of stay in a country are decisive factors for taxation and the creation of […]

more