Austria MOF Clarifies Taxation of Pension Payments Under DTA With U.K.

The Austrian Federal Ministry of Finance Sept. 12 posted online Federal Finance Court Decision No. RV/6100183/2023, clarifying the taxation of pension payments under the DTA with the U.K. The taxpayer received both a lump sum and a transfer from a U.K. company’s pension plan upon retirement. The Tax Office taxed both payments as income from employment, denying a partial exemption. On appeal, the Federal Finance Court found that: 1) the U.K. pension plan qualified as a tax exempt pension fund under the DTA; 2) the lump sum and transfer were a one-off payment only taxable in the U.K., but the ...