Amendments To The Austrian Fund Taxation Regime

In the course of the enactment of the Austrian Alternative Investment Funds Managers Act, the Austrian fund taxation regime was amended, thereby becoming applicable to any and all alternative investment funds, irrespective of their state of origin and the legal form in which they are organized.

Introduction

Austrian fund taxation regime

Austrian tax law provides for a specific tax regime for investment funds. Such fund tax regime is characterized by the fund being treated as a tax-transparent vehicle (thereby having no shielding effect). As a result, any income will be taxed on the level of the investors. This applies to income distributed by the fund, as well as to any income accrued but not distributed to the investors (so-called deemed distributions). Prior to the enactment of the Austrian Alternative Investment Funds Managers Act (AIFMA) into Austrian law, this fund taxation regime applied to Austrian investment funds (comprising regulated vehicles within the