The government’s draft bill comprises a package of legislation accompanying the 2027/2028 biennial budget and bringing together numerous tax measures. We have summarised the key points of these changes – some of which will have a significant impact – in a concise format for you.
1. Corporate Income Tax
Progressive CIT rate from 2028 – the end of the flat rate
Until now, corporations have been subject to a flat tax rate of 23 %. In future, the rate will become progressive:
- Income up to EUR 1 million: remains 23 %
- Portions of income above EUR 1 million: 24 %
This applies to financial years that begin after 31.12.2027. No pro-rata adjustment is provided for diverging financial years.
Two special features:
- Corporate groups (§ 9 KStG): The progression is applied only at the group parent level (up to EUR 1 million of group income 23 %, above that 24 %). The decisive factor is the group parent’s financial year – results of group members with a diverging balance sheet date may therefore fall into the higher rate earlier. Restructurings around the introduction of the rate are to be scrutinised more closely from the perspective of abuse (§ 22 BAO).
- Foreign income: Income exempted under double taxation treaties shall, via a progression proviso, increase the tax rate applicable to domestic income.
For certain corporations with limited tax liability (e.g. public-law corporations, charitable corporations), the flat rate of 23 % is retained for reasons of simplification.
Shareholder current accounts – new statutory rule
Outstanding receivables on current accounts owed by natural persons as (direct or indirect) shareholders must, by the balance sheet date, either be
- fully settled or
- converted into an arm’s-length loan agreed in writing and bearing interest (including a credit assessment and collateral).
If this does not happen, the outstanding amount is deemed, on the day after the balance sheet date, to have accrued as a distribution – with the consequence that capital gains tax (KESt) must be remitted (deemed distribution).
A de minimis threshold of EUR 50,000 applies to shareholders with a qualified holding (from 10 %). The rule is to apply for the first time to financial years ending in 2027.
Practical tip: Existing current accounts should be reviewed early and – where necessary – placed on an arm’s-length loan basis.
Restriction of the final-taxation effect for certain withholding taxes
For real estate income tax, capital gains tax and the withholding tax under § 99 EStG, certain corporations previously benefited from a final-taxation effect. In future: if the tax was withheld at 23 % but the progressive rate results in a higher burden, the final-taxation effect ceases to apply – the income must then be included in the CIT assessment. Applicable for the first time to financial years beginning after 31.12.2027.
Increased CIT prepayments 2028
For 2028 (or 2029 in the case of a diverging financial year), a flat-rate increase of CIT prepayments by 4.5 % is envisaged – but only if the assessed prepayment is based on a CIT liability of more than EUR 1 million from a calendar year before 2028. For groups, only the group parent’s financial year is decisive.
Withholding tax on line easement rights
In step with the progressive rate, the withholding tax on line easement rights for payments after 31.12.2027 rises from 7.5 % to 7.75 %.
2. Value Added Tax
Exclusion from import VAT offsetting in cases of suspicion
From 1.1.2027, the tax office may, by notice, exclude a taxable person for a maximum of two years from collecting import VAT (EUSt) via the tax office (§ 26 para. 3 no. 2 UStG) – namely where there is a suspicion of a fiscal offence in connection with the importation of goods.
Extended liability when engaging sham companies (including VAT)
Liability for engaging sham companies (§ 9 SBBG) is being significantly extended. Previously, only the remuneration claims of the affected employees were covered – in future, additionally:
- contributions and levies payable to health insurance institutions,
- wage tax on the commissioned work,
- the VAT resulting from the contract.
Liability for wage tax and VAT is asserted by the tax authority by means of a liability notice. In force from 1.1.2027.
Practical tip: Greater care in selecting contractors pays off – the liability risk will in future extend all the way to VAT.
3. Further taxes and levies
Income tax points for businesses
Investment-related profit allowance – securities are dropped: Under this government bill, the investment-related profit allowance (GFB) is being severely restricted on a temporary basis. For financial years beginning after 31.12.2026 and before 1.1.2030, the range of qualifying assets is limited to physical investments. During this period, securities no longer qualify (replacement purchases for already-favoured securities remain possible on a transitional basis). From financial years after 31.12.2029, securities are permitted again.
Real estate income tax – old assets become more expensive: When selling properties classed as old assets (no longer subject to tax as at 31.3.2012), the flat-rate acquisition costs are reduced:
- Standard case: from 86 % to 80 %
- Rezoning case: from 40 % to 30 %
Since lower flat-rate acquisition costs mean a higher taxable surplus, the tax burden rises. Affected are disposals after 31.12.2026, the relevant point in time being the obligating transaction (not the inflow).
Parcel tax (new Parcel Tax Act)
A new parcel tax of EUR 2 per parcel (or, alternatively, per order) applies to the domestic delivery of parcels as part of mail-order sales. Only large mail-order retailers are affected whose domestic mail-order sales in the previous year exceeded EUR 100 million. Entry into force: 1.10.2026, applicable to deliveries after 30.9.2026.
Alcohol tax +30 %
The alcohol tax rate rises on 1.1.2027 from EUR 1,200 to EUR 1,560 per 100 litres of pure alcohol – an increase of 30 %.
Standard fuel consumption levy (NoVA)
- For vehicles for which only an NEDC CO₂ value is available, it may in future be applied at a factor of 1.27.
- To avoid hardship cases, the taxation level is aligned for certain used vehicles last registered abroad (concerns exclusively vehicles of displaced persons from Ukraine).
Stability levy (bank levy)
The rate currently in force remains in place until and including 2029, after which it reverts to the level before the Budget Restructuring Measures Act 2025. The special payment introduced for 2025/2026 will be continued until 2028, reduced by around two thirds in 2029 and abolished entirely from 2030.
Valuation Act – fair market value from a single sale
In future, the fair market value of securities and shares may, under certain conditions, be derived from a single sale (provided that size and rights are comparable or are made comparable through premiums/discounts). A later sale may also be invoked as a retroactive event (§ 295a BAO). The background is that the previously customary “Vienna method” often led to undervaluation. Under the new rule, the tax office will in future be able to apply, much more easily, higher, market-oriented values. To be applied to valuation procedures carried out after 10 June 2026.
National Emission Certificates Trading Act (CO₂ pricing)
Reintroduction of the relief measure for agricultural diesel for 2026 and 2027. In addition, clarity is to be created regarding the timing of the transfer of the national CO₂ pricing system into the EU ETS II (expected 2028).
Conclusion: The Budget Accompanying Act 2027–2028 brings noticeable changes for businesses – above all the progressive CIT rate from 2028 and the new rule on shareholder current accounts. In addition, there are increased burdens on sales of real estate from old assets, a restricted benefit for the profit allowance as well as various new or increased levies (parcel tax, alcohol tax, NoVA).
We recommend reviewing affected structures – in particular current accounts, planned real estate disposals and investment decisions – at an early stage in order to make optimal use of the transitional periods.
Note: This is currently a government bill (draft). Changes in the further parliamentary process are possible – we will keep you informed.
>>Link to the draft of the Budget Accompanying Act 2027-2028
Do you have questions about the planned changes or would you like to know what they mean specifically for your business? We are happy to support you with the assessment and preparation – simply get in touch with us.