The draft Abgabenänderungsgesetz 2026 would amend 22 federal laws, covering global minimum tax, procedure, VAT, crypto reporting and energy duties.
Austria’s Federal Ministry of Finance announced a consultation on 22 October 2026 on the draft Tax Amendment Act 2026 (Abgabenänderungsgesetz 2026, or AbgÄG 2026) on 21 October 2026. The bill would amend 22 federal laws, with the Pillar Two global minimum tax rules at its centre.
Pillar Two safe harbours
Changes to the Minimum Taxation Act (Mindestbesteuerungsgesetz) would introduce four safe harbours:
- Simplified effective tax rate (§ 53a): Top-up tax (Ergänzungssteuer) falls to zero where the simplified rate is at least 15 per cent or a net simplified loss arises. It applies to fiscal years starting on or after 31 December 2026, or 31 December 2025 by election.
- Side-by-side (§ 56a): Top-up tax under the income inclusion rule and the undertaxed profits rule is zero if the parent’s jurisdiction runs a qualifying regime, with a nominal rate of 20 per cent and an effective rate of 15 per cent.
- Ultimate parent entity (§ 56b): Relief covers entities in the parent’s jurisdiction under eligible domestic regimes.
- Substance-based tax incentive (§ 56c): Top-up tax tied to qualifying incentives is removed, capped by eligible payroll costs and tangible asset depreciation (5.5 per cent, or a 1 per cent book value option).
The draft also defines “conditional taxes” (bedingte Steuern), excluding them from covered taxes under qualified domestic minimum top-up taxes. The transitional country-by-country reporting safe harbour would be extended through 2029.
Income and corporate tax
The Income Tax Act (EStG 1988) changes would refine valuation rules for private foundations and trusts using deemed acquisition costs. Lump-sum telework deductions could rest on employer–employee agreements where no daily logs are kept. Income from photovoltaic systems closely tied to, and subordinate to, another main income source would be assigned to that source.
Extraordinary income from business sales or closures caused by death, certified disability or reaching the age of 60 would receive restructured relief, limited to once per lifetime.
Under the Corporate Tax Act (KStG 1988), share-managing savings banks could join, and act as parent entities of, corporate tax groups.
Procedure and VAT
The Federal Fiscal Code (BAO) reform overhauls co-operative compliance (Begleitende Kontrolle). Businesses with revenue above EUR 40 million, banks and insurers would need independent auditor certification of their tax control system, mandatory electronic filing and at least four formal meetings a year. Refunds would be paid by direct bank transfer, with limited consumer exceptions.
Under the Value Added Tax Act (UStG 1994), the minimum purchase threshold for VAT-free tourist export sales rises to EUR 125 (USD 140) from EUR 75 (USD 84).
Crypto and financial offences
The Crypto Reporting Duty Act would be aligned with EU Directive 2023/2226 (DAC8) and the MiCA regulation, with the Large Traders Office (Finanzamt für Großbetriebe) receiving reports. Self-disclosure immunity under § 30a of the Financial Offences Act (FinStrG) would extend to certain wage tax withholding errors.
Energy, excise and consular fees
From 1 January 2027, natural gas duty is set at EUR 5.722 per MWh, with EUR 5.932 per MWh for hydrogen. No alcohol or tobacco tax would be paid, reimbursed or collected below EUR 10.
Consular fees include EUR 71 for citizenship certificates, EUR 62 for civil status certificates, EUR 26–29 for criminal record checks, EUR 193 for marriage capability certificates and EUR 195 for an adult Visa D.
Other changes
The bill also postpones some real estate transfer tax implementation dates to 1 October 2027 and insurance tax dates to 2028 and 2029. It sets a 5 per cent threshold for correcting fire protection tax reports without administrative penalties, and valuation reassessment changes apply from 1 January 2029.
The consultation will end on 3 November 2026, after which the ministry is expected to consider the comments received.
