The Austrian Ministry of Finance, published the 2014 Tax Amendment Act (Abgabenänderungsgesetz 2014; AbgÄG 2014), on 9 January 2014. This amending law will make changes to certain Austrian Tax Acts, as follows:

  • Limiting tax deductibility of interest and royalty payments to affiliated corporations;
  • Limitations in the group taxation rules  including geographical limitation in such rules;
  • Removal of rules allowing amortization of goodwill;
  • Limitation to the set off of foreign losses;
  • Per person and per year limits for the tax deductibility of salaries/wages;
  • Limitations to favorable taxation of golden handshakes;
  • Discounting of long-term accruals;
  • Extension of limited tax liability on interest;
  • Increase in the minimum share capital for limited liability companies (GmbHs); and
  • Removal of capital duty from 2016.