Draft Austrian Tax Amendment Act 2023 Published

ISLA is pleased to inform members that the draft Austrian Tax Amendment Act 2023 (‘Abgabenänderungsgesetz 2023’ the ‘Draft Bill’) has now been published by the Austrian Ministry of Finance as of the 21 April 2023.

This follows comments submitted by ISLA, and other industry stakeholders internationally and in Austria, following the publication of the Information on Levying and Refunding of Austrian Withholding Taxes on Dividends received by Taxpayers with Limited Tax Liability (Non-Resident Taxpayers) from Public Limited Companies’ by the Austrian Ministry of Finance in November 2022.

The Draft Bill specifies the record date as the date for determining beneficial ownership of Austrian shares, dividend entitlement and any subsequent refund of any withholding tax subject to eligibility. It provides additional requirements with respect to any refund of Austrian withholding tax, including of: (i) a minimum holding period of a total of 45 days around the record date and (ii) the requirement of the claimant bearing an adequate economic risk of the underlying security.

Currently in draft form only, the provisions within the Draft Bill may be subject to further amendments during the open review process until 12 May 2023.

To find out more on this topic, view the latest PwC Financial Services Tax Newsletter on the subject, which can be found here.

The topic will be discussed at the upcoming ISLA Tax Working Group on the 3 May 2023. We will be keeping members informed of next steps.

ISLA recently published a new template clause to assist market participants when lending and borrowing Austrian securities. Use of the templates is not mandatory and parties may adapt the templates as required. To learn more visit ISLA’s Legal Services page, or view the template here.

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