Austria: Reporting obligations for certain payments

Companies and bodies, including associations, foundations and public bodies, have the obligation to notify certain payments made to a foreign country for services delivered in Austria after 30 December 2010 if the amount exceeds 100,000 euro.

The obligation to notify services delivered in Austria under article 22 of the Income Tax Law is applied for example to salaries and compensation paid to managing directors with a shareholding of more than 25%, private foundation management board members and liberal professions. The obligation extends also to agency services rendered by taxpayers subject to unlimited tax liability and to commercial or technical advisory services.

A reporting is not necessary if the fees paid to a service provider within one calendar year do not exceed EUR 100,000. The requirement to report payments is also not applied if – in the case of a taxpayer subjected to limited tax liability – the client retains withholding tax for certain services or if the payment is made to a foreign corporation that is subject to a tax rate of at least 15% in its home country.

The reporting must contain the name (company name), the home or the business address of the service provider as well as the international country code of the respective country and, if available, the VAT number and social security number. In case of a corporation or a partnership without legal personality acting as service provider, the individual responsible for the services in Austria has additionally to be declared.

The reporting of the payments to foreign countries has to be made electronically and submitted to the VAT tax office after the end of the calendar year and by the end of February of the following year. If the electronic filing cannot be expected of the taxpayer, the respective form can be sent to the tax offices by the end of January of the following year.

The deliberate violation of the obligation to report payments made to foreign countries represents a breach of the tax code and can imply fines up to 10% of the amount that should have been reported and of maximal EUR 20,000.

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