Austria MOF Clarifies Taxation of Success Bonuses Credited to Managing Director

The Austrian Federal Ministry of Finance June 10 posted Federal Finance Court Decision No. RV/2100156/2022, clarifying the taxation of success bonuses credited to a managing director. The taxpayer, the managing director of a company, was credited with performance bonuses that weren’t actually paid. The tax office treated the credited amount as taxable employment income because it had accrued as a company liability. On appeal, the Federal Finance Court found that: 1) the income was deemed received when the taxpayer had legal and economic disposal power, including for amounts merely credited; 2) the managing director, with signing authority and control over ...