Which country gets to keep it?
The tax liability of international managing directors plays an important role in the new Double Taxation Agreement (DTA) between Austria and Japan. The new DTA contains a provision, according to which also the income taxes of “governing bodies similar to managing directors” such as supervisory or administrative board members are subject to taxation in the country where the company is seated. The provision applies regardless of where the function is carried out. This is a departure from the previously applied place-of-work principle. However, the legislator states in the DTA legislative materials that this provision only applies to executives that hold an actual managing function in the country where the company is seated.2019年5月17日