No carry-forward of losses on moving to Austria

The utilisation of losses in general, and the carry-forward of losses in particular, correspond to the ability-to-pay principle, as not only profits but also the absence of profits are taken into account. Losses (in principle also foreign) accordingly to consider so that only the increase in assets is subject to taxation. Although this is realised in Austria, unpleasant situations for the taxpayer can still arise in certain constellations. The Supreme Administrative Court (2008/15/0034 of 28.5.2009) has now decided that before The Justification The unlimited tax liability a loss carried forward from another country Not can be recycled in Austria.

The Supreme Administrative Court's decision was based on the case of a German national who gave up his physiotherapy practice in Germany, moved to Austria and, in turn, opened a practice there. The Austrian tax authorities have Import one correctly determined in Germany Loss carry-forward Not permitted and this was upheld by the Administrative Court. The key ground for the decision is that, as regards the Date of loss occurrence no income generation yet and Unlimited tax liability in Austria However, this template did not allow for the consideration of worldwide income, and therefore also (foreign) losses. It should also be systematically noted that positive income earned in Germany in previous years was likewise not taken into account for tax purposes in Austria, and that the loss in Germany is in no way connected with the income subsequently achievable in Austria. Furthermore, not excluded, that the Loss carry-forward in Germany, which, of course, doesn't get lost, will one day through revenue generation in Germany indeed still balanced can be. Austria's differentiation regarding the utilisation of losses between persons who are continuously subject to unlimited taxation and those who switch between unlimited tax liabilities in several states also infringes Not to EU law (freedom of establishment).

Image: © Boggy - Fotolia