Austria is poised to implement a regulatory change with the introduction of the Federal Act on the Publication of Country-by-Country Income Tax Information Reports (CBCR Publication Act – CbCR-VG). This draft law, published by the Federal Ministry of Justice, aligns closely with the EU public country-by-country (CbC) reporting directive (EU Directive 2021/2101), reflecting Austria’s commitment to international tax transparency standards.
Scope and Thresholds
The draft law extends to corporations, registered partnerships based in Austria, and domestic branches of entities with legal forms akin to those listed in Annex I of Directive 2013/34/EU. Companies or groups exceeding €750 million in revenue over the preceding two reporting periods fall within the reporting obligation.
Options and Safeguards
Under the draft law, companies have two options as per the EU directive: the “safeguard clause” and the “website publication exemption.” The safeguard clause permits temporary omission of certain information for up to five years, subject to justification and scrutiny by the Austrian Commercial Registry Court. Additionally, Austria adopts the website publication exemption, allowing reports to be exempted from website publication if already available on the Austrian Commercial Registry Court’s website.
Content and Reporting Obligations
The public CbC report entails information including the ultimate parent company’s name, financial year, currency used, subsidiary details, activities, employee count, and income generated. Reporting obligations extend to ultimate parent companies, representatives, subsidiaries, and branches meeting specific criteria.
Exemptions and Filing Requirements
Exemptions are granted to credit institutions and investment firms meeting certain criteria, with notification requirements to the Commercial Register Court. Reports must be filed electronically within 12 months of the financial year’s end, with data disclosed for EU states and those on the EU blacklist separately.
Audit and Penalties
In addition to reporting, an audit obligation exists for assessing disclosure compliance, though substantive audits are voluntary. Failure to publish or submit reports accurately and on time may incur penalties up to €10,000, with potential fines for non-compliant representatives reaching €100,000.
Applicable Dates
The obligation to prepare and publish public CbC reports commences for financial years starting after June 21, 2024, with the inaugural report due for 2025.
Conclusion
Austria’s draft law on public country-by-country reporting reflects its commitment to international tax transparency standards, aligning closely with EU directives. With stringent obligations, exemptions, and penalties, companies operating in Austria must prepare for compliance with the new regulations to avoid financial repercussions and maintain transparency in their tax affairs.
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