Matthias Fucik

The Inward Investment and International Taxation Review Edition 13 Editors: Charles C Hwang The Inward Investment and International Taxation Review is a practical overview of the business tax regimes in key jurisdictions worldwide, with a focus on the implications for international organisations seeking to expand into new markets.

All questions i Corporate residence A company is resident in Austria and thus subject to unlimited tax liability covering its worldwide income if it has either its place of management or its legal seat in Austria. The place of management depends on where the material commercial direction of a company is taken. If a company has several managing directors or multiple board members, the location of board meetings is usually considered decisive.

All questions Direct taxation of businesses i Tax on profitsDetermination of taxable profit Resident taxpayers are taxed on their worldwide income. Taxable profits are derived from the accounting profits, which are generally based on accruals. Through the effective tax reconciliation, accounting profits are adjusted to follow mandatory tax rules that differ from the accounting rules. For example, corporate dividend income is mostly tax-exempt, which leads to a deduction from the accounting profits.