Austria MOF Clarifies Tax Treatment of Cross-Border Temporary Employment

The Austrian Federal Ministry of Finance July 18 posted online Federal Finance Court Decision No. GZ. RV/2101065/2018, clarifying the tax treatment of cross-border temporary employment. The taxpayer, an Austrian company, signed work contracts with a nonresident company that had no permanent establishment in Austria. The contracts included provisions on service periods, pricing, and invoicing. Following external audits in 2016 and 2018, it was determined that cross-border temporary employment had occurred and that the relevant provision fees were subject to withholding tax. Accordingly, the Tax Office concluded that there was no presence of a valid work contract. On appeal, the Federal ...