Transfer pricing in Austria

Transfer pricing in Austria at a glance

Regulation Type OECD
Are there specific transfer pricing regulations? Yes
Submission deadline N/A
Submission deadline upon request N/A
Annual update required No
Official language requirements German, English accepted
Potential impact of penalties N/A

 

Austrian tax law

Rules for transfer pricing in Austria are based upon:

  • Income Tax Act section 6(6);
  • Corporate Income Tax Act section 8;
  • Federal Tax Code sections 118, 124, 131 and 138;
  • Transfer Pricing Guidelines (BMF-010221/2522-IV/4/2010, 28 October 2010);
  • Income Tax Guidelines 6.13.3, 2511-2513;
  • Corporate Income Tax Guidelines 14.8.2, 1147;
  • ministerial decrees AÖF Nos. 114/1996, 122/1997, 155/1998, and 171/2000, and
  • several opinions published by the MF regarding selected transfer pricing issues.

OECD

Austria follows the OECD Transfer Pricing Guidelines.

Methods

Accepted methods

Accepted methods are:

  • The comparable uncontrolled price (CUP) method;
  • the resale price method;
  • the cost plus method;
  • the profit split method, and
  • the transactional net margin method (TNMM).

Priority of methods

In Austria the most appropriate method should be used, meaning there is no special priority of methods. If more than one method is applicable, the traditional transaction methods are preferred over the transactional profit methods.

Documentation requirements

Information that should be included in the documentation:

There are no specific transfer pricing documentation – other that those from the OECD – requirements in place in Austria.

Language

Officially documentation must be provided for in German, however, English is accepted in some cases.

Requirements to prepare documentation annually 

There are no documentation deadlines in Austria.

Submission deadline upon request by tax authorities

There are no documentation deadlines in Austria.

Advanced Pricing Agreements

General

Since 2011 rules for transfer pricing in Austria prescribe two unilateral Advanced Pricing Agreement (APA) procedures, namely a ruling request and a formal unilateral APA procedure. Bilateral and multilateral agreements are sometimes available as well.

Terms

Rules for transfer pricing in Austria do not prescribe a specific term.

Penalties

Rules for transfer pricing in Austria do not provide specific transfer pricing penalties.

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