On 3 October 2023, the Austrian Ministry of Finance (MoF) published a draft law implementing the Pillar Two global minimum tax as per the Council Directive (EU) 2022/2523 of 14 December 2022. The draft law is open for public consultation which will remain open until 20 October 2023.
The draft law includes the income inclusion rule (IIR) and the undertaxed payment/profit rule (UTPR) to guarantee a minimum tax rate of 15% for Multi-National Enterprises (MNE) groups with annual consolidated revenue of EUR 750 million or more in a minimum of two out of the previous four fiscal years.
The IIR is set to take effect for financial years commencing on or after 31 December 2023, while the UTPR is generally scheduled to be applicable to financial years starting on or after 31 December 2024. The draft law states that Qualified Domestic Minimum Top-up Tax (QDMTT) for financial years beginning on or after 31 2023.
The draft law also provides clarification on the concept of covered taxes, qualifying refundable tax credits, transitional safe harbour provisions, as well as compliance and filing requirements.
