An Austrian resident is leased to foreign group companies of the Austrian’s German employer for less than 183 days. The income of this person is taxed in the other states. However, the Austrian tax authorities deny the application of the exemption method and also tax the foreign income. In its decision of September 2nd, 2019, RV/3100621/2017, the Austrian Fiscal Court (Bundesfinanzgericht) dealt with the question of determining which state has the right to tax the employee’s income. Furthermore, the court assessed whether a taxpayer is required to provide foreign proof of taxation in order to apply the exemption method.
