AUSTRIA Law and Practice Contributed by: Clemens Philipp Schindler and Mohamed Hemdan, Schindler Attorneys
• Action 12 (require taxpayers to report aggressive tax planning arrangements) – implemented through the adoption of DAC6 via the Austrian EU Report - ing Requirement Act ( EU-Meldepflichtgesetz , or EU-MPfG). • Action 13 (re-examine transfer pricing documenta - tion) – new OECD standards implemented through the VPDG. • Action 14 (make dispute resolution mechanisms more effective) – implemented through the MLI (Austria has also implemented an APA programme and is authorised to enter into bilateral APAs). • Action 15 (develop a multilateral instrument) – implemented through the MLI. 9.2 Government Policy and Objectives Approach The Austrian government has fully supported the BEPS project at all times. On 3 October 2023, the Austrian Ministry of Finance published its draft for a Pillar Two implementation law, the Austrian Minimum Taxation Act ( Mindest- besteuerungsgesetz , or MinBestG), which came into force on 31 December 2023. Austria implemented Pillar Two by means of a separate law rather than amending the Austrian Corporate Income Tax Act. It includes an Income Inclusion Rule (IIR, applicable for fiscal years starting on or after 31 December 2023) and an Undertaxed Profits Rule (UTPR, applicable for fiscal years staring on or after 31 December 2024), as well as a Qualified Domestic Minimum Top-Up Tax (QDMTT). Moreover, all safe harbours as suggested by the OECD in its various Pillar Two publications (eg, temporary safe harbours, a permanent safe harbour for non-material constituent entities, a QDMTT safe harbour, and a temporary UTPR safe harbour) are implemented. Austrian entities are, in general, required to file a GloBE Information Return (GIR) within 15 months after the end of the reporting fiscal year (18 months for the transitional year). However, the Austrian Minimum Taxation Act also provides the option to transfer the obligation to file the GIR to another Austrian entity (or under stricter rules to a foreign entity). The first GIR filing (for 2024) must be submitted by 30 June 2026. Failure to comply with the administration of
the new rules can be sanctioned with a fine of up to EUR100,000 (EUR50,000 in case of gross negligence). On 7 May 2025, DAC9 came into effect, providing a framework to simplify the Pillar Two reporting obli - gations for affected multinational groups. It enables the exchange of GIR reports between member states, eliminating the need to submit separate reports in each jurisdiction where a Pillar Two entity is resident. Instead, the ultimate parent company or a designated entity may make a single, central filing. Member states were required to implement DAC9 by 31 December 2025. DAC9 is implemented in Austria through amendments and additions to the MinBestG and its new imple - menting regulation (MinBestG-DVO), which set out detailed rules on the content of the GIR report and its exchange with other countries, in line with DAC9 and the Multilateral Competent Authority Agreement on the Exchange of GloBE Information (GIR MCAA). These new amendments and additions took effect on 1 January 2026, in accordance with Article 2 of DAC9, and apply for the first time to financial years beginning on or after 31 December 2023. 9.3 International Tax Since the publication of LuxLeaks, the Panama Papers and similar reports, public interest in international taxation has grown substantially, with the recent US pushback on Pillar Two further intensifying debates over the effectiveness and fairness of current meas - ures. As a result, the Austrian business and political press frequently reported on such developments and on scientific contributions concerning how to make taxation more efficient. However, neither the BEPS project nor the implemen - tation of its recommendations receives significant media attention, as topics like BEPS typically remain confined to tax professionals, multinational corpora - tions and specialised media, rather than mainstream public discourse. 9.4 Competitive Tax Policy Objectives The Austrian economy relies to a large extent on for - eign markets. Consequently, the Austrian government pursues a competitive, but not an aggressive, tax poli -
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