The Austrian Ministry of Finance published a ruling
dealing with the question whether employment income derived from
short-term activities at the head office in Austria by employees
resident in Italy and working at the Italian permanent
establishment are subject to tax in Austria (EAS
3398).
In the case at hand, employees of an Austrian company who were
resident in Italy and generally employed at the Italian permanent
establishment of the Austrian company performed short-term
activities at the Austrian head office. Pursuant to art. 15(1)
of the double tax treaty concluded between Austria and Italy
("DTT AT/IT") generally Italy
as the state of residence of the employees has the taxation rights
on employment income, unless the employment is performed in
Austria.
