Austria: Adopted Extension of Transitional Measures until Implementation of Pillar 1

On 15 February 2024, the United States, Austria, France, Italy, Spain, and the United Kingdom adopted an extension to the agreement reached on 21 October 2021 "Regarding a Compromise on a Transitional Approach to Existing Unilateral Measures During the Interim Period Before Pillar 1 is in Effect". This new agreement extends the interim period from 1 January 2022 to 30 June 2024. The G20/OECD Inclusive Framework on Base Erosion and Profit Shifting aims to address the tax challenges arising from the digitalisation of the economy. In particular, Pillar 1 targets multinational enterprises (MNEs) with a global turnover of more than EUR 20 billion and before-tax profitability of 10 per cent. The parties have called for the finalisation of the text of the Pillar 1 multilateral convention by the end of March 2024, with a view to holding a signing ceremony by the end of June 2024.