On October 15th, 2020, the Austrian Supreme Administrative Court had to decide on a case of a Slovak company that was treated as a taxpayer in Slovakia and as a partnership under Austrian tax law. The shareholder of the Slovak company was a resident of Austria who received dividends from an Austrian corporation through the Slovak company. The Court held that under Austrian tax law the dividends are allocated to the Austrian shareholder and that this is also relevant for the application of the tax treaty with Slovakia. Since the dividends were not attributable to a permanent establishment in Slovakia, Austria kept its taxation right under the treaty.
