AUSTRIA Law and Practice Contributed by: Raphael Holzinger, Julia Hochreiter, Matthias Jancura and Claudia Synek, Grant Thornton Austria
10. Relevance of the United Nations Practical Manual on Transfer Pricing 10.1 Impact of UN Practical Manual on Transfer Pricing The fact that Austria has ratified a number of double taxation conventions in accordance with the United Nations (UN) Practical Manual on Transfer Pricing has a consequential effect on the domestic transfer pricing practices that are in place. However, should the relevant dou - ble taxation convention adhere to the OECD Model Tax Convention on Income and Capital, the UN Practical Manual on Transfer Pricing exerts a lesser influence – yet it may be utilised in instances where supplementary elaboration on the OECD Model Tax Convention on Income and Capital remains absent. 11. Safe Harbours or Other Unique Rules 11.1 Transfer Pricing Safe Harbours The prevailing ATPG currently incorporates pro - visions for safe harbours with regard to routine services. In addition to the low-value-adding intra-group services (LVAIGS) concept of the OECD, the ATPG has further adopted the con - cept of routine services, referring to the EU Joint Transfer Pricing Forum (EU-JTPF) Report on low-value-adding services. Moreover, it is customary practice and is also subject to regulation in the TPDA and the ATPG that, for the purpose of documentation, only “significant” cross-border intercompany trans - actions are to be considered. There is no legal definition foreseen regarding the qualification as “significant” ; this must be done on a case-by- case basis depending on the facts and circum -
stances of the case, the size of the business unit, and/or other relevant aspects. 11.2 Rules on Savings Arising From Operating in the Jurisdiction The Austrian legislative framework does not incorporate regulations governing savings that arise from operating in Austria. 11.3 Unique Transfer Pricing Rules or Practices The ATPG generally adheres to the OECD Guide - lines and, consequently, there are no unique transfer pricing rules or practices in place. 11.4 Financial Transactions The ATPG generally adheres to the OECD Guide - lines with regard to financial transactions and thus no specific regulations have been imple - mented. 12. Co-Ordination With Customs Valuation 12.1 Co-Ordination Requirements Between Transfer Pricing and Customs Valuation Austrian rules do not necessitate the co-ordina - tion of transfer pricing and customs valuation. However, it is imperative to acknowledge that – if any adjustments pertaining to transactions subject to customs are to be made – the relevant costs must be given due consideration. 13. Controversy Process 13.1 Options and Requirements in Transfer Pricing Controversies It is an uncommon occurrence for the ATA to undertake an audit that is solely concerned with
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