International tax law – Double taxation agreement

If a trader undertakes operations (commercial activities) abroad, this can trigger tax liability abroad under local laws. Such foreign taxation is usually in addition to taxation in Austria, so that international double taxation arises. Statutory provisions intended to prevent such international double taxation are grouped together under the term ‘international tax law’. This relates solely to the field of taxation of earnings – that is, income tax and/or corporate income tax but not value-added tax.

Until inheritance tax was abolished in Austria, cases of international double taxation could also arise in cases of cross-border inheritances and gifts but due to the abolition of inheritance tax in Austria, this is no longer relevant.