Banking and Finance (27)

Corporate Law (20)

Employment (15)

Insolvency and Restructuring (20)

Real Estate (16)

Tax Law (19)

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Terms found Action for the restoration of ownership Amended dismissal Annuity Appeal against a decision Asset Assignment of Claims (Cession) Austrian Public Employment Service (AMS) Banking secrecy Bankruptcy proceedings BaSAG Book value / carrying amount Branch Brokerage Agreement Building Law Business Business entity Call for Tenders Capitalisation Casual Employment Certification Change in Operations Collective Bargaining Agreement Company Agreement Company Pension Comparison of business assets Compensation Compliance Compulsory enforcement Consumer Protection Act Corporate Reorganisation Act (URG) Corporation Covenants Debt restructuring Debtor Declaration of consent Decree Deferral Discount Dividend Double taxation Double-entry bookkeeping Easement Employee Stock Ownership Equity Equity loan Factoring Fees Act Financial plan Foreclosure sale Foreign-currency loan General partnership General Protection Against Dismissal Global assignment GmbH Group taxation Guarantee Guarantee credit Hidden reserves Hire Purchase Insolvency Insolvency Act Insolvency administrator Insolvency estate Insolvency register Inspection of the Land Register Inventory Land Register Letter of comfort Lien Limited partnership Liquidation Loan Loss Carryforward Maternity leave Merger Natural person Nominal value Option Outsourcing Part-time work Partnership Personal insolvency Pledge principle Preliminary decision on an appeal Progression Prohibition of alienation and encumbrance Prohibition on the repayment of deposits Property income tax Provision Proxy Public Limited Company Reallast Repayment Restriction on Transfer Restructuring proceedings Retention of title Revision Right of first refusal Right of retention Rights in rem Self-consumption Severance Pay Severance Pay new Severance Pay old Shareholder loans Short-time work Silent partnership Skimming procedure Social Plan Sole Proprietorship Standard value Stock Subscription right Superstruction Supervisory Board Tenancy agreement Works Council

Group taxation

What is group taxation?

By forming a group of companies, profits and losses can be offset against one another within the group. Under group taxation, the profits and losses of the individual group members are aggregated at the level of the group parent and subject to taxation. Group heads may be corporations subject to unlimited tax liability, EU entities subject to limited tax liability that have their place of management in an EU Member State, are registered in the Austrian Commercial Register with a branch, provided that the respective shareholding is attributable to the branch, or multi-parent groups in the form of a so-called holding partnership (partnership or syndicate) comprising exclusively entities eligible to act as group heads.

The group member is part of a group of companies. Group members may include domestic corporations subject to unlimited tax liability, commercial and economic cooperatives, and foreign entities comparable to a domestic corporation. However, in the case of the latter, they must be directly affiliated with group members subject to unlimited tax liability or with the group parent. Subsidiaries of a foreign company belonging to the group are therefore excluded from participating in group taxation. In insolvency proceedings concerning a group member, the group agreement is treated as a continuing obligation (claims for termination in insolvency proceedings); the insolvency administrator – or, in restructuring proceedings under self-administration, the debtor – has the option to enter into or withdraw from the group agreement.

Any claim for compensation against a group member that has become insolvent may, in the event of withdrawal, only be asserted as an insolvency claim. Any provision in the group agreement granting a group member an extraordinary right of termination linked to the commencement of insolvency proceedings is invalid. As a rule, the prohibition on termination will also prevent a group member from terminating the group agreement. In the event of insolvency proceedings against a group member, it is therefore always necessary to consider any resulting consequences for the remaining group members.

Learn more about our Tax Law practice. Please feel free to contact us for further information.