Austria: Draft legislation amending tax law

The government's draft legislation for the 2024 Tax Amendment Act, which was published in mid-June, includes the following measures:

• Allowance effective January 1, 2024 of tax deductions for food donations to charities, and sales tax exemption effective January 1, 2025 for food donations to charities
• Disallowance of carryforward losses of a group parent from times before the group of companies took effect if they include (previously deductible) depreciation on the lower partial value and disposal losses in connection with investments in corporations that were already members of another group of companies at the time of the depreciation or disposal loss
• Clarification effective January 1, 2025, of the place of performance of streaming services for value added tax (VAT) purposes to be the place where the recipient has their place of residence or habitual abode
• Allowance effective January 1, 2026, of conversion of "phantom shares" to start-up employee participation without having to evaluate and tax the monetary benefit from the redemption of the virtual company shares

Read a June 2024 report (German) prepared by the KPMG member firm in Austria