Tax newsletter: Austria — April 2014
The most recent draft of the Austrian Budget Accompanying Act of 2014 (Budgetbegleitgesetz, BudBG 2014) provides for, inter alia, a calculation basis for the real-estate transfer tax (RETT) in compliance with the Austrian federal constitution as from 1 June 2014. The main issues of the intended new regulation are presented in the following.
Austrian RETT is basically based on the consideration paid to acquire real property. In case of gratuitous transfers, the tax basis currently amounts to the value of the real property. The value of a real property is therefore essential especially in connection with donations, inheritances or in the case of sale of shares in real property companies. The value of a real property in the meaning of the provisions of the Austrian Real Estate Transfer Tax Act (Grunderwerbsteuergesetz, GrEStG) is yet not the market value, but the — onefold or threefold — so-called standard tax value (Einheitswert), which is usually much lower than the fair market value (usually between 0.1 per cent and 10 per cent of the fair market value).
The Austrian Constitutional Supreme Court (Verfassungsgerichtshof, VfGH) set aside the hitherto applicable regulation regarding the valuation of real property with effect from 1 June 2014 due to unconstitutionality. If the old regulation is not replaced by a new one before this date, the fair market value will be considered for the calculation of the value of a real property thereafter…
Click on the link below to read the rest of the DLA Piper briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
The Australian Taxation Office released a draft ruling on the Goods and Services Tax treatment of bitcoin transactions on 20 August 2014.
DLA Piper’s ‘Life sciences: patent extension strategies and antitrust global update’ video covers global antitrust and competition issues including product hopping and reverse payment patents.
Analysis from The Lawyer
Cross-border work and political tensions are dominating this year’s entries for Finance Team of the Year at The Lawyer Awards.
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work