Austria MOF Clarifies Taxation of Employment Income Under DTA, Protocol With Italy

The Austrian Federal Ministry of Finance March 12 posted Federal Finance Court Decision No. RV/7104388/2020, clarifying the taxation of employment income under the 1981 DTA and protocol with Italy. The taxpayer, an individual employed by an Austrian company and seconded to Italy from 2014 to 2017, claimed that Austria lacked taxing rights over her 2016 employment income. The Tax Office taxed her regular salary and bonus, applying the credit method under the DTA. On appeal, the Federal Finance Court found that: 1) the taxpayer maintained a residence and strong personal ties in Austria, making her a treaty resident there and ...