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announced in December that the wage tax withholding obligation for employers without a wage tax PE in Austria would be repealed with retroactive effect.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 […]

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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 […]

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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 […]

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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 […]

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