The Austrian Ministry of Finance has recently published
information on tax aspects in connection with Hong Kong trusts (EAS
3396).
The Ministry stated that in order to assess Austrian tax
consequences in connection with trusts, in a first step it has to
be determined by way of a comparability test how a trust is to be
qualified for Austrian income tax purposes. While a case by case
analysis is always necessary, a trust is generally to be qualified
as "assets serving a purpose without having legal
capacity" (Zweckvermögen). As a consequence, a
foreign trust can generally be seen as being tax resident in
Austria if:
- its income is not attributable to a
different taxpayer, such as a settlor or a beneficiary (in that
respect the general Austrian rules on attribution of income for tax
purposes apply); and
