Austria Suffers from Company Exodus

Politics ♦ Published: July 22, 2013; 20:25 ♦ (Vindobona)

Due to the relocation of businesses, the Austrian state has lost tax intake of € 1.3bn since 2008. The Austrian group taxation model must not be abolished experts of the Austrian Ministry of Finance say.

Austria Suffers from Company Exodus / Picture: © Vindobona.org

After a report issued by the Austrian Audit Court, the Austrian group taxation model is discussed highly controversially. Group of companies, which have their seat in Austria, are benefiting from tax privileges. Since 2005, foreign losses are deductible in Austria. In addition, the he corporate income tax was cut from 34% to 25% eight years ago.

The costs of the Austrian group…