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Austria Publishes Synthesized Text of Tax Treaty with Spain as Impacted by BEPS MLI — Orbitax Tax News & Alerts

Austria's Ministry of Finance has published the synthesized text of the tax treaty with Spain as impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The synthesized text has been prepared based on the reservations and notifications (MLI positions) submitted by the respective countries. The authentic legal texts of the tax treaty and the MLI take precedence and remain the legal texts applicable.

The MLI applies for the 1966 Austria-Spain tax treaty (German language):

  • with respect to taxes withheld at source on amounts paid or credited to non-residents, where the event giving rise to such taxes occurs on or after 1 January 2023; and
  • with respect to all other taxes for taxes levied with respect to taxable periods beginning on or after 1 January 2023.

Notwithstanding the above, Article 16 of the MLI (Mutual Agreement Procedure) has effect for a case presented to the competent authority of a Contracting State on or after 1 July 2022, except for cases that were not eligible to be presented as of that date under the treaty prior to its modification by the MLI, without regard to the taxable period to which the case relates. Further, the provisions of Part VI (Arbitration) of the MLI have effect with respect to the treaty for cases presented to the competent authority of a Contracting State on or after 1 July 2022, and for cases presented prior to that date to the extent agreed by the competent authorities.

MLI synthesized texts of Austria's tax treaties can be found on the Ministry of Finance treaty webpage.