For companies, the following changes will apply to exit taxation both in accordance with the provisions of the Austrian Income Tax Act 1988 (EStG) and the Austrian Restructuring Tax Act (UmgrStG): In the event of relocation after brexit comes into force, immediate taxation will take place in the future. As a result, a request for payment in instalments can no longer be made in the operational area. This applies to all cases of relocation of undertakings under Section 6 VI of the Austrian Income Tax Act 1988 which take place after the withdrawal of the United Kingdom, as well as to restructurings within the meaning of the Austrian Law on The Tax on Reorganisation which are decided or contractually signed after the withdrawal of the United Kingdom. However, for individuals who moved to the UK before Brexit came into effect and requested a tax deferral due to offshoring at that time, the subsequent Brexit does not result in immediate taxation. In such cases, the increase in value is therefore generally imposed only when the asset in question is actually sold at a later date. If, in other circumstances, payment of tax in instalments has been requested, the subsequent Brexit does not entail the immediate payment of open instalments (the statement contrary to No 6157b of the Austrian Income Tax Directive 2000 must not be complied with). If an enterprise is considered to be established in both Contracting States, the competent authorities shall determine by mutual agreement the registered office of the enterprise for the purposes of the contract. In the absence of an agreement, the company is not entitled to the advantages provided for in the contract, with the exception of the advantages provided for in Articles 21 (elimination of double taxation), 22 (non-discrimination) and 23 (mutual agreement procedure). The Annex to the Decree contains an Agreement and Protocol („the Agreements“) between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Austria on the prevention of double taxation and the prevention of tax evasion and avoidance. The decision brings the agreements into force. This paragraph shall be without prejudice to the taxation of the profits of the company from which the dividends are distributed. This section contains a list of all tax treaties concluded by Austria with links to the texts of the treaties. 1.
The competent authorities of States Parties shall exchange information which is foreseeably relevant for the application of the provisions of this Convention or for the application or enforcement of national tax laws of any kind and description collected on behalf of States Parties or their political subdivisions or local authorities; to the extent that taxation under this Convention does not infringe the Convention. The exchange of information shall not be restricted by Articles 1 and 2. At the time of signature of the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains, concluded today between the United Kingdom of Great Britain and Northern Ireland and the Republic of Austria, the undersigned have agreed that the following provisions shall form part of the Agreement. On 23 October 2018, a new double taxation agreement was signed in Vienna, which entered into force on 1 March 2019 and applies to Austrian taxes from 1 January 2020 (Federal Law Gazette III No. 32/2019). This new agreement will apply to corporate tax in the United Kingdom of Great Britain and Northern Ireland from 1 April 2019 and to income and capital gains tax from 6 April 2019. 3. For the purposes of this Article, `dividends` means income from shares, `Enjoyment` shares or `limitation rights`, mining shares, founder shares or other rights other than claims, profit sharing and any other element subject to the same tax treatment as income from shares under the law of the State of residence of the distributing company.
Article 27 also provides that, where income or profits are taxed in a Contracting State by reference to the amount transferred or received in that State and not by reference to the total amount, any exemption under the Convention by the other State shall be limited to the amount of income or profits taxed in the first-mentioned State. .