The Austrian Ministry of Finance (MoF) published the draft of the European Union (EU) Tax Amendment Act 2016 on 9 May 2016. The focus of this proposal is the draft of the new Austrian Transfer Pricing Documentation Law (TPDL). The new law serves as the legal basis for Country by Country (CbC) Reporting in Austria, as developed by the Organization for Economic Co-operation and Development (OECD)/G20 in the course of its Base Erosion and Profit Shifting (BEPS) project.
However, the draft not only establishes the obligation to prepare a country CbC report (country specific reporting of multinational groups (MNE groups) with a consolidated group turnover of at least €750 million), it also introduces a three-tier transfer pricing documentation approach. This approach requires local constituent entities with turnover generally exceeding 50 million only turnover of the Austrian entity to prepare a group wide Master File and a country-specific Local File.
