Pillar-Two

According to the Austrian Minimum Taxation Act (“MinBestG”), only a single Austrian constituent entity is assigned to be liable for any top-up-tax under the QDMTT, IIR and UTPR and thus acts as a central taxpayer for the entire group in Austria. The MinBestG allows affected groups the greatest possible flexibility on that matter by giving the (domestic or foreign) ultimate parent entity the right to assign one Austrian constituent entity as a central taxpayer.

If a group decides to exercise such right, proof of the assignment must be submitted by the designated constituent entity before the end of the of the calendar year in which the fiscal year concerned ends. For groups with a standard fiscal year, a corresponding assignment and notification to the tax office must therefore be made by 31 December 2024 for FY 2024.

In that regard, a function has recently been added to the official online platform of the Austrian Ministry of Finance (FinanzOnline) to provide the proof of the assignment as a central taxpayer. The new function is available under “Other Services” in the “Applications” section of the platform. Additionally, proof of the assignment by the ultimate parent entity shall be attached as a pdf file.

It is therefore advisable that affected groups decide in a timely manner which Austrian constituent entity should act as a central taxpayer vis-à-vis the tax authorities. If no proof of an assignment is submitted, the top domestic parent located in Austria will be considered central taxpayer or, in the absence of a top domestic parent located in Austria, the economically most important constituent entity. Thus, groups should take advantage of the opportunity given to them to select a central taxpayer suitable for their structure and needs.

If you have any questions about the Pillar Two regulations, your contact persons at Deloitte will be happy to help.