Deferred tax

On 29 July 2026, Austria’s Budget Accompanying Act 2027–2028 (Budgetbegleitgesetz 2027–2028) was published. Under the Act, a progressive corporate income tax rate will apply to financial years beginning after 31 December 2027. The tax rate will remain at 23% for income of up to € 1 million, while income exceeding this amount will be taxed at 24%.

The change in the tax rate will have to be taken into account for the first time when measuring deferred taxes for the annual financial statements as at 31 December 2026 and will primarily affect the measurement of deferred tax assets arising from tax-deductible write-downs of investments that are spread over seven years in accordance with the “Siebentelabschreibung” clause of the Austrian Corporate Income Tax Act (Körperschaftsteuergesetz, KStG).