The Ministry of Finance has published an EAS ruling
dealing with the taxation of income received by an Austrian
beneficiary from a Hungarian trust.
When assessing the Austrian tax consequences of a Hungarian
trust distributing income to Austrian beneficiaries it has to be
determined whether the trust is transparent or non-transparent for
Austrian tax purposes. A trust is essentially non-transparent if
its assets and income are attributable for tax purposes to itself
rather than to other persons (the latter mainly depending on
whether the founder/beneficiaries have a certain level of influence
on the trust). In case of a non-transparent trust, only the
distributions from the trust are taxable in Austria, whereas the
income of the trust derived from the various foreign income sources
is not taxable.
