AUSTRIA Law and Practice Contributed by: Raphael Holzinger, Julia Hochreiter, 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 predomi - nantly enshrined within the Income Tax Act (ITA), Section 6 paragraph 6, and is founded on the arm’s length principle as articulated in Article 9 of the OECD Model Tax Convention on Income and Capital. This adherence to the OECD Transfer Pricing Guidelines for Multina - tional Enterprises and Tax Administrations (the “OECD Guidelines” ) is evidenced by the absence of rigid formulae and the predominance of prin - ciple-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 is publicly available, non-binding guid - ance designed to ensure uniform interpretation of transfer pricing through tax audits and, con - sequently, for taxpayers. Moreover, the Transfer Pricing Documentation (Transfer 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 trans - fer pricing documentation with the Austrian tax authorities (ATA) outside the scope of the TPDA, it is recommended to avoid unfavourable adjust - ments 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 beneficial to prepare – and submit upon request – a proper transfer
pricing analysis and documentation (according to the general principles of the FFC), even if one does not fall under the scope of the TPDA. 1.2 Current Regime and Recent Changes The initial ATPG was published in 2010, with the most recent revisions occurring in 2021. These revisions have been extensively reviewed, incor - porating the updates of the OECD Guidelines as a consequence of the OECD Base Erosion and Project Shifting (BEPS) project as well as national and international case law. Moreover, the ATPG 2021 has undergone revisions in 2025( “Wartung- serlass 2025” ). The revised ATPG incorporates the most recent contributions from the OECD, along with prevailing national and international case law. 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 revi - sions 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 participations of more than 25%. However, even below this percentage threshold, it is rec - ommended to comply with the arm’s length prin - ciple – given that other provisions 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
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