The draft bill containing various modifications to article 198/1 BITC 92 (i.e. 30% EBITDA rule), has been removed from the agenda of the Finance Commission. Therefore it is unrealistic that these modifications will be adopted before year-end. The modifications included in the draft bill – and which are hence not adopted – include the allocation of negative EBITDA and negative exceeding borrowing costs to group entities and 3 methods for allocating the 3mio EUR threshold.
Due to a lack of political consensus, the bill as well as the expected royal decree is most likely to be passed on to the next Federal Government and has therefore been postponed.
For the time being, the current legislation as approved per December 2017 and amended in July 2018 should be relied on when assessing the group impact of the 30% EBITDA rule in order to properly estimate tax provisions per year-end.
More information on the content of the draft bill can be found in our previous newsflash of 29 November 2019.
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