Austria's draft Abgabenänderungsgesetz 2026 introduces Pillar Two safe harbours, higher VAT duty-free allowances, new document fees and tighter compliance monitoring for large enterprises.
Austria’s Ministry of Finance has opened consultation on the draft federal bill Abgabenänderungsgesetz 2026 (AbgÄG 2026), which amends 22 tax laws, duties and related procedural statutes.
Pillar Two safe harbours
The Minimum Taxation Act (MinBestG) would introduce safe harbours under the Global Minimum Tax (GloBE) framework:
- ETR Safe Harbour (§ 53a): top-up tax is reduced to zero if the simplified effective tax rate meets or exceeds the minimum rate, or if a simplified net loss occurs.
- Side-by-Side Safe Harbour (§ 56a): applies where the ultimate parent entity is in a jurisdiction with a qualifying side-by-side regime meeting the 20% nominal rate and base coverage requirements.
- UPE Safe Harbour (§ 56b): gives relief to ultimate parent entity jurisdictions with an eligible domestic tax system.
- Substance-Based Safe Harbour (§ 56c): reduces top-up tax attributable to qualifying substance-based incentives, tied to payroll costs (5.5%) and tangible asset depreciation.
The bill also regulates the treatment of conditional taxes under the GloBE rules.
Income tax and corporate income tax
Under the Income Tax Act 1988 (EStG 1988), distributions and contributions to or from private foundations, or comparable foreign entities, must be valued at fair market value. Employers and employees with telework agreements may determine eligible telework days from written agreements when individual days are not recorded.
Income from a photovoltaic system closely linked and subordinate to another primary income source would be categorised entirely under that source. The special tax rate for extraordinary income on the sale or termination of a business would apply after death, permanent disability or reaching 60 years of age. At least seven years must have passed since acquisition or opening, and the relief applies once per lifetime. Employers may correct prior-year payroll tax calculations until 15 February of the following year.
Under the Corporate Income Tax Act 1988 (KStG 1988), non-profit housing associations would have to notify specific planned business activities electronically via FinanzOnline. Fully taxable share-managing savings banks would become eligible group members for group taxation.
VAT and real estate transfer tax
The Value Added Tax Act 1994 (UStG 1994) would raise certain duty-free allowances, including in Art. 7 Abs. 1 Z 3 lit. c, from EUR 75 to EUR 125. It would also update the Kleinunternehmerregelung and cross-border distance sales provisions for small businesses.
The Real Estate Transfer Tax Act 1987 (GrEStG 1987) would clarify rules on direct or indirect share consolidations in the hands of a single buyer or group of buyers. Implementation of specific provisions would shift to 1 October 2027.
Fees
The Fees Act 1957 and the Consular Fees Act 1992 would set these fees:
- citizenship certificate: EUR 71
- civil status certificates and extracts: EUR 62
- criminal record certificate application: EUR 26 to EUR 29
- marriage or partnership eligibility certificate: EUR 193
- duplicate driver’s licence application: EUR 73
- residence visa (Visa D): EUR 195 for adults and EUR 97 for children under six years
Authorities can withhold issued official documents until the applicable fee is paid.
Procedure, crypto reporting and excise
The Federal Fiscal Code (BAO) would overhaul Begleitende Kontrolle (horizontal monitoring) for large enterprises, meaning those with revenues above EUR 40 million, credit institutions and insurers. They would move to real-time compliance monitoring based on mandatory Tax Control System audit reports. The draft also introduces specialised FinanzOnline delivery rules for taxpayers with unpaid legal representatives. It enables automated data transfer between the Business License Information System (GISA) and the Ministry of Finance. Tax refunds would be paid by electronic bank transfer, with exceptions for consumers without bank accounts.
The Crypto Reporting Act would align national requirements for Crypto-Asset Service Providers with EU Directive 2023/2226 (DAC8) and OECD frameworks.
For excise duties and energy taxes, a EUR 10 de minimis threshold would apply to alcohol and tobacco taxes. Record-keeping would be simplified for pharmacies using tax-free alcohol for medicine production of up to 75 litres annually. Tax rates would be rebalanced to EUR 5.932 per MWh for hydrogen and EUR 5.722 per MWh for natural gas.
The consultation period will conclude on 3 November 2026.
