The Austrian Minimum Tax Act, which came into force on December 31, 2023, implements the global minimum tax introduced throughout the EU by Directive 2022/2523 into domestic Austrian law. The global minimum tax affects all constituent entities of multinational corporate groups with an annual turnover of EUR 750 million reported in the consolidated financial statements and affects approximately 100 corporate groups in Austria alone. Furthermore, an estimated number of 1.000 constituent entities of foreign MNE Groups are located in Austria. Every group entity or permanent establishment of globally organized corporate groups in Austria, is potentially subject to a 15 % minimum tax on its excess profits in Austria as a result of the global minimum tax!
The global minimum tax tests each MNE Group to see whether a minimum tax level of 15% on so-called "excess profits" is achieved in each country of operation. If this is not the case, Austria can levy the difference to the minimum tax level. Even though the tax level in Austria and many other countries is generally well above 15% and Safe-Harbour Rules make it considerably easier to calculate the effective tax burden, neither a high tax level nor an applicable safe harbor exempts companies from any declaration obligations or the timely exercise of certain options.
- Minimum tax report or notification of the identity of the liable constituent entity
- Option to commission the entity liable to pay any Top-up Tax due
- Minimum advance tax return of the taxable entity
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MinBestG | Mindestbesteuerungsgesetz
Co-Authors
Stefan Bendlinger | Valentin Bendlinger
More Information
The OECD’s Global Minimum Tax and its Implementation in the EU:
A Legal Analysis of Pillar Two in the Light of Tax Treaty and EU Law
Valentin Bendlinger
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ICON PUBLICATIONS
- Does Pillar 2 Qualify Transparent Entities and PEs as Residents Under Tax Treatis? | tax notes international | 12-2024
- A Minimum Tax that isn't: is there a real purpose for pillar two? | Caribbean Tax Law Journal | 06-2024
- Globale Mindestbesteuerung und Safe Harbours | SWI 2023 | 03-2023
- The OECD’s Global Minimum Tax and its Implementation in the EU: A Legal Analysis of Pillar Two in the Light of Tax Treaty and EU Law | Wolters Kluwer Legal & Regulatory | 10-2023
ICON NEWS
- MinBestG | Beauftragung des Abgabepflichtigen bis 31.12.2024! | 14.11.2024
- GLOBALE MINDESTBESTEUERUNG | „Safe Harbours“ und Pillar II | 10.03.2023
ICON IN MEDIA
- Global minimum tax on multinationals goes live to raise up to $220bn | Financial Times | 01-2024
- Donald Trump’s return raises prospect of global tax war
