Tax & Legal News in English June 2025

Update on US Customs Policy 

Since Trump's second inauguration, the US administration has introduced numerous tariff-related measures. Most goods originating in the EU are currently subject to an additional tariff of 10% when imported into the USA. Companies should thus explore customs optimization options. This could include the use of special customs procedures and free trade agreements, as well as the verification or modification of the non-preferential origin of goods by relocating individual processing steps. Contractual design with suppliers and customers is also particularly important due to the erratic US customs policy.

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Immigration: Employment as an Au-Pair in Austria

Working as an Au-Pair allows young individuals to live abroad and experience the culture and language of the host country for a limited period. Au-Pairs typically assist with childcare and light household tasks, receiving accommodation, meals, and pocket money in return.
The employment of Au-Pairs is governed by the Austrian Domestic Help and Domestic Employees Act, along with specific regulations in the minimum wage tariff for Au-Pairs. Total working hours, including standby time, must not exceed 17 hours per week. The host family is required to register the Au-Pair with statutory social insurance and provide a statement of hours worked, remuneration, and deductions.
Residency requirements for Au-Pairs vary based on nationality. EU/EEA or Swiss citizens planning to stay longer than three months must apply for a registration certificate within four months of entry. Third-country citizens must apply for a visa or residence permit based on the intended duration.
Before employment, the host family must notify the Austrian Public Employment Service (AMS) using a specific form. This should be done at least three to four months in advance. The AMS will issue a confirmation if several conditions are met: the Au-Pair is aged between 18 and 28, the Au-Pair hasn't worked in Austria as an Au-Pair for more than a year in the last five years, the employment resembles a true Au-Pair relationship, and the Au-Pair has basic German language skills. This confirmation is necessary for visa or residency application.
If the stay is up to 183 days, a Visa D must be applied for at the Austrian embassy in the home country. For stays up to one year, a resident permit must be obtained.

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Summer jobs - internship or employment contract?

With the holiday season approaching, many students consider working in summer jobs. In order not to jeopardize family subsidies, certain income thresholds should not be exceeded. For the employers, the correct qualification of the summer job (internship or regular employment contract) is crucial.

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Budget Accompanying Act 2025: Tightened Framework for Estate Planning and Real Estate Transfers

The Budget Accompanying Act 2025 brings significant tax changes, especially in the area of real estate. These include, among others, the new surcharge for sales of reclassified land and several measures regarding real estate transfer tax on share deals and share consolidations. Since these changes will take effect as of July 1 2025, it is advisable to carry out any planned transfers and restructurings promptly.

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Part 4: Transfer pricing guidelines 2021 - maintenance decree 2025

The latest update to the Austrian Transfer Pricing Guidelines 2021 deals (among other topics) with the transfer pricing treatment of pass-through costs, comparability criteria for benchmark studies and shareholder activities. The maintenance decree 2025 especially deals with the question of whether shareholder activities have to be treated as tax deductible from an Austrian corporate income tax perspective. Furthermore, the maintenance decree 2025 also highlights the treatment of pass-through costs in case a related entity only acts as an intermediary between the service provider and the service recipient.

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Austrian Tax Appeals Court on the eligibility to apply for withholding tax refunds

Certain conditions must be met for the exemption from withholding tax to apply to profit distributions by an Austrian GmbH. Otherwise, the withholding tax must be withheld by the distributing company but can be refunded upon request. In a recent decision the Tax Appeals Court (BFG) ruled that a grandparent company cannot be considered a parent company entitled to apply if a non-transparent corporation is interposed.

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The Austrian Energy Crisis Contribution (EKB-S): Key Rules and Amendments Until 2030

The Energy Crisis Contribution – Electricity (EKB-S), introduced in Austria in late 2022, has been extended until 2030 as part of the national budget consolidation measures. This extension is accompanied by significant tightening of the regulatory framework, including lower revenue thresholds and an increased contribution rate. Although deductions for eligible investments remain available, the maximum offset amount has been significantly reduced. The stricter rules and administrative obligations pose growing challenges for electricity producers subject to the levy.

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No accident insurance cover when using an e-scooter on the way to work

The Austrian Supreme Court has ruled that an accident with an e-scooter on the way to work is not covered by accident insurance.
The ruling was prompted by the case of an employee, who had an accident on his way to work riding an e-scooter. He wanted to reduce the speed and pressed the brake, which caused the front wheel to slip and subsequently led to a fall. Due to his injuries, the employee applied to the relevant insurance institution for a disability pension, which was rejected.

If an accident occurs on the way between home and work, it qualifies as a commuting accident, which is covered by accident insurance due to an extension that is not legally required but has been made for socio-political reasons. Commuting accidents can therefore lead to an entitlement to a disability pension. Although employees are basically free to choose their own means of transportation to and from work, only typical routes and risks are covered by the insurance. In this context, the question arises as to where the limits of insurance cover lie.

In its decision, the Supreme Court dealt with the question whether e-scooters are to be classified as common means of transportation that ensure safe driving or whether they are merely sports or play equipment for leisure purposes. The Court ruled that e-scooters are to be classified as “trend sports equipment” and require special skills due to their technical characteristics. Furthermore, they are significantly less stable than bicycles and their use requires constant active balancing. In previous decisions, the Court has already denied accident insurance cover for riding monowheels and is now extending the applicable principles to e-scooters. Accordingly, the Supreme Court ruled that the use of e-scooters results in a special risk due to their specific characteristics and accident insurance cover is therefore denied.

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Austrian Electricity Act 2.0

The Austrian Electricity Act is to be completely revised by the end of this year. This will set the course for the adaptation of the outdated law.

One of the numerous innovations is the legal anchoring of so-called electricity supply contracts (off-site PPAs). It is intended that an off-site PPA does not constitute a supply of electricity, meaning that the supplier obligations do not apply to the electricity generator.

There are also significant innovations around shared energy use with the establishment of the active customer. In summary, this is intended to greatly accelerate decentralized electricity generation and use.

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