AUSTRIA Law and Practice Contributed by: Raphael Holzinger, Matthias Jancura and Claudia Synek, Grant Thornton Austria
1. Rules Governing Transfer Pricing 1.1 Statutes and Regulations The legislative framework governing Austria’s material transfer pricing policies is predominantly enshrined within the Income Tax Act (ITA), Section 6 paragraph 6, and is founded on the arm’s length principle as articu - lated in Article 9 of the OECD Model Tax Convention on Income and Capital. This adherence to the OECD Transfer Pricing Guidelines for Multinational Enter - prises and Tax Administrations (the “OECD Guide - lines”) is evidenced by the absence of rigid formulae and the predominance of principle-based guidelines. Consequently, Austria’s transfer pricing policies are largely aligned with the OECD guidelines. The OECD Guidelines (last updated in January 2022) are not mentioned in Austrian legislation but form the basis for the Austrian Transfer Pricing Guidelines (ATPG), which are publicly available, non-binding guidance designed to ensure uniform interpretation of transfer pricing through tax audits and, consequently, for taxpayers. Moreover, the Transfer Pricing Documentation (Trans - fer Pricing Documentation Act (TPDA)) stipulates the preparation of transfer pricing documentation (master file and local file). In addition, the TPDA obliges the preparation and filing of a country-by-country report (CbCR) or CbCR notification. Although it is not mandatory to file formal transfer pricing documentation with the Austrian tax authori - ties (ATA) outside the scope of the TPDA, it is rec - ommended to avoid unfavourable adjustments in the course of a tax audit by the ATA. Owing to the option to estimate tax bases for tax authorities (based on the Federal Fiscal Code (FFC)), it is considered benefi - cial to prepare – and submit upon request – a proper transfer pricing analysis and documentation (accord - ing to the general principles of the FFC), even if one does not fall within the scope of the TPDA. 1.2 Current Regime and Recent Changes The initial ATPG were published in 2010, with the most recent revisions occurring in 2021. These revi - sions have been extensively reviewed, incorporating the updates of the OECD Guidelines as a conse - quence of the OECD Base Erosion and Project Shift - ing (BEPS) project as well as national and interna -
tional case law. Moreover, the ATPG 2021 underwent revisions in March 2025 ( Wartungserlass 2025 ). It is expected that the most recent contributions from the OECD (OECD-MC Update 2025), along with prevailing national and international case law, will be subject to further updates soon. Furthermore, it is pertinent to note that the TPDA is applicable for financial years subsequent to 31 December 2016. It is important to emphasise that the TPDA has not been subject to any revisions since its initial publication. 2. Definition of Control/Related Parties 2.1 Application of Transfer Pricing Rules For material purposes, Section 6 paragraph 6 of the ITA defines associated enterprises based on partici - pations of more than 25%. However, even below this percentage threshold, it is recommended to comply with the arm’s length principle – given that other pro - visions in different Austrian tax acts (eg, Section 8 of the Corporate Income Tax Act) could also give rise to negative tax consequences (eg, hidden profit distribu - tions) in the event of non-compliance. For documentation purposes in accordance with the TPDA, enterprises are defined as associated if they are part of a consolidated multinational group of com - panies – ie, if they have the same shareholder with a stake of more than 50% and if at least one enterprise of the group is located outside Austria. Each transac - tion between associated enterprises is defined as a controlled transaction. However, it should again be noted that transactions between non-affiliated parties (ie, those lacking a joint controlling interest of more than 50%) are required to adhere to the arm’s length principle. These transactions are not subject to the TPDA but might be subject to documentation require - ments in light of the FFC.
12 CHAMBERS.COM
Powered by FlippingBook