Austria appears to have incorrectly applied a derogation
in relation to the implementation of the interest limitation rule
contained in the EU's Anti-Tax Avoidance
Directive.
The EU's Anti-Tax Avoidance Directive (ATAD), inter
alia, requires Member States to implement an interest
limitation rule in their domestic laws. Pursuant thereto, the tax
deductibility of net interest (interest expenses minus interest
income) shall be limited insofar as it exceeds an amount of 30% of
the taxpayer's earnings before interest, tax, depreciation and
amortisation (EBITDA). In general, this rule should have been
implemented by 31 December 2018. However, by way of derogation,
Member States which have national targeted rules for preventing
base erosion and profit shifting (BEPS) risks as of 8 August 2016,
which are equally effective to the interest limitation rule set out
in the ATAD, may delay the implementation of the interest
limitation rule at the latest until 1 January 2024 (cf.
a
