Austria MOF Clarifies Taxation of Pension Income Under DTA, Protocols With Germany

The Austrian Federal Ministry of Finance Dec. 4 posted Federal Finance Court Decision No. RV/5100317/2024, clarifying the taxation of pension income under the 2000 DTA with Germany, last amended in 2023. The taxpayer, resident in Austria, received both Austrian and German pension payments. The Austrian Tax Authority included the German pension income in the taxpayer’s Austrian income, resulting in a tax liability. The taxpayer appealed, arguing that the German pension shouldn’t affect the Austrian tax rate because the Austrian income was below the tax-free threshold. On appeal, the Federal Finance Court held that the: 1) taxpayer was unconditionally subject to ...