Practical training abroad - no mandatory relocation of the centre of vital interests

Under double taxation agreements (DBAs), the Residence has a great significance for the taxation law of the respective state. Does the taxpayer Living rooms in different countries, that is the case Centre of life interests for the Residency decisive. The Universal Flash Storage has recently (GZ RV/0520-I/08 of 27.1.2011) participated in the nearly two-year rotation training of an Austrian medical student in England - he could not find a suitable job in Austria to employ him. During his stay abroad, he had a room available in his mother's apartment and also bought an apartment in Austria that he wanted to live in himself after his time of training abroad. He also spent regular Short stays in Austria.

The debate was about whether the training received in England as part of the rotation training program was considered British income tax underlying Earnings from employment also in Austria to tax are. To DBA Between Austria and Great Britain (and Northern Ireland), income from a service relationship Basically I'm Country of residence taxed, whereby the state in which the activity is carried out also has the right to tax. The tax office considered Austria to be the state of residence, since the training was only temporary in nature. no shift of the center of life interests It is assumed that the income of the English doctors in Austria will remain subject to tax, therefore. Due to the DBA, the income in Austria will be subject to tax under the Calculation method taxed, which in this case leads to a sensitive situation. Back payment It's coming.

The Universal Flash Storage confirmed the view of the tax office. The central point of reference for the unlimited tax liability in Austria is the place of residence or habitual residence. This is sufficient for Owning an apartment, If the apartment is kept and used. In the present case, the room in the mother’s house constitutes a residence in any case. Furthermore, for residence in Austria after the „departure“ there must be close ties to the country. personal and economic relationships remain unchanged. According to the income tax guidelines, no shift in the center of life interests is to be expected during short-term stays abroad of less than two years. Furthermore, the (sponsored) purchase of the property in Austria additionally documented that a economic relationship to Austria This continued to be the case. Due to the frequent visits to Austria, the personal connection could also still be seen. Against the center of life interests in England On the other hand, the doctor says that the not settled in a domestic environment He did not have a permanent residence, but instead occupied staff rooms in the hospitals or rooms rented out on short notice. Moreover, there was a slight tinge of dissatisfaction, as compared to the tax office, the housing development funding department painted a completely different picture regarding the future plans of the taxpayer.

Image: © Anna Blau - BMF