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Several changes to group loss treatment have been introduced under Austria's recently approved tax amendments. Under the changes, the temporary use of non-resident group member losses can still be utilized to offset taxable profits in Austria, but only the losses of non-resident group companies in other EU member states and in jurisdictions that have concluded a comprehensive assistance agreement with Austria.

Recapture and taxation of such losses still applies in the following situations:

  • The losses can be or have been utilized in the foreign jurisdiction
  • The non-resident ceases to be a group member or exist at all
  • The non-resident's business is scaled down significantly

Group members resident in non-qualifying jurisdictions will automatically have group membership for tax purposes terminated after December 31st, 2014. As a result, any foreign losses of the non-qualifying group member that were previously utilized and not already subject to recapture or taxation will become subject to recapture and taxation from January 1st, 2015. In order to mitigate the impact, the recapture will be allocated over a three-year period.

In addition to the limitations of non-resident eligibility, the deductibility of qualifying foreign losses will be limited beginning tax year 2015. The offset using foreign losses will be limited to 75% of the taxable income of the group's Austrian-resident members. Unused losses can be carried forward indefinitely.

Jurisdictions with which Austria has concluded comprehensive assistance agreements include:

Albania, Algeria, Andorra, Armenia, Australia, Bahrain, Barbados, Belgium, Belize, Bosnia-Herzegovina, Brazil, Bulgaria, Canada, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Gibraltar, Greece, Hong Kong, Hungary, Indonesia, Ireland, Israel, Italy, Japan, Jersey, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Mexico, Monaco, Morocco, the Netherlands, New Zealand, Norway, the Philippines, Poland, Portugal, Qatar, Romania, San Marino, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, St. Vincent and the Grenadines, Sweden, Switzerland, Tajikistan, Thailand, Turkey, United Kingdom, USA, Venezuela, Vietnam