Austria: Limitation on application of prohibition on deducting intragroup interest and license fees (Federal Finance Court decisions)
Summary of recent direct and indirect tax developments
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April 22, 2025
The Federal Finance Court recently held in two cases that the prohibition on deducting intragroup interest and license fees subject to less than 10% tax at the level of the receiving corporation applies in cross-border situations within the EU or the European Economic Area (EEA) only in cases of tax abuse or unusually high interest rates.
Other recent tax developments in Austria include:
- Foreign currency losses arising between date of dividend resolution and dividend payment are tax deductible; foreign losses reversible at level of tax group parent (Federal Finance Court decision)
- Applications for relief from CO2 certificate costs under the National Emissions Allowance Trading Act 2022 (NEHG 2022) open from May 1, 2025, to June 30, 2025
- Input value added tax (VAT) deduction for administrative services within a group of companies (CJEU judgment in C-527/23 of December 12, 2024)
- VAT in the Digital Age (ViDA) in Austria
- Input VAT deduction despite non-existence of invoice (Federal Finance Court decision)
- Direct refund claim for unduly paid VAT (CJEU judgment in C-640/23 of March 13, 2025)
- Change of customs status from non-Union goods to Union goods (CJEU judgment in C-376/23 of January 16, 2025)
- Mandatory assessment for pension and benefits in kind (Administrative Supreme Court decision)
- Treatment of VAT in case of stamp duty on rental contracts (Federal Finance Court decision)
Read an April 2025 report prepared by the KPMG member firm in Austria