Austria has enacted the Tax Amendment Act 2024, the law was published as Law No. 113 in the Austrian Official Gazette on 19 July 2024.
The Tax Amendment Act 2024 came into effect on 20 July, 2024.
Key highlights
Country-by-Country reporting: New requirements mandate that pre-tax profits be included in qualified country-by-country (CbC) reports. Furthermore, income tax expenses reported in financial statements must be offset by specified expenses.
Grant deductions: The law allows specific grants used for establishing income-generating assets to be deducted as special expenses over the next nine assessment periods, in addition to grants claimed in the year of application.
EU compliance for entrepreneurs: The Act sets forth new obligations for Austrian entrepreneurs operating businesses in other EU member states, enhancing compliance with EU regulations.
Small business regime: Procedures and criteria for a special regime designed for small businesses within EU member states are established, promoting ease of operation for smaller enterprises.
Input tax deductions: The legislation clarifies the scope and conditions under which input tax deductions can be claimed, providing greater certainty for businesses.
Earlier, the National Council (Nationalrat) approved the Tax Amendment Act 2024 on 3 July 2024, followed by the Federal Council’s (Bundesrat) approval on 10 July 2024. This update introduces various amendments to modernise the country’s tax framework.
