Austria: Draft Tax Amendment Act 2025 includes implementation of DAC9, incorporation of OECD Pillar Two administrative guidance

The draft Tax Amendment Act 2025 includes provisions implementing DAC9 on the automatic exchange of Pillar Two information between EU member states, as well as provisions incorporating recent OECD Pillar Two administrative guidance.  

The draft legislation also includes various changes and clarifications regarding income tax, value added tax (VAT),  and real estate transfer tax.

Other recent tax developments in Austria include:

• Increase in special tax deduction for investments
• Ministry of Finance (BMF) guidance on taxation of “split profit distributions”
• Non-deductibility rule for management salaries not applicable in context of research and development (R&D) premium (Administrative Supreme Court)
• Actual ability to influence economic and organizational direction is decisive in application of loss-trafficking rules (Administrative Supreme Court)
• Liability for incorrectly invoiced VAT amounts when services are not exclusively provided to non-taxable persons (Court of Justice of the European Union (CJEU) judgment in C-794/23, Finanzamt Österreich)
• Place of import VAT in case of motor vehicle irregularly brought into customs territory (Federal Finance Court)
• Primary residence exemption in mixed zoning cases (Federal Finance Court)
• No refund of real estate capital gains tax upon rescission of property sale (Federal Finance Court)

Read a November 2025 report prepared by the KPMG member firm in Austria