Austria: expected changes to the tax law

Alessandro PasutAUSTRIA

The group taxation scheme provides currently for the possibility of claiming goodwill amortisation for shares acquired in domestic companies which has to be spread over 15 years. Pursuant to the proposed changes, the possibility of goodwill amortisation will be abolished for the acquisition of shares after 28 February 2014. Existing goodwill amortisations will not be affected provided the amortisation had an impact on the determination of the purchase price for the acquired shares.

As of 1 March 2014, the deductibility of interest and royalties paid to related parties resident in low tax countries is limited. The deduction restriction has to be applied if the income derived from the interest and royalties is not taxed in the recipient’s state or is subject to a tax rate of less than 15%. If the applicable tax rate in the recipient’s state amounts to at least 10%, 50% of the interest and royalty expenses will remain deductible.

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