Automatic exchange of bank information

Financial institutions (e.g. banks or custodians) are obliged to identify clients residing in partner states and, if necessary, to transmit the required information to the respective tax authority in the client's partner state. In addition to general data on account holders and accounts (name, account number, tax identification number, etc.), information on dividends, interest, sales proceeds from financial assets, certain insurance income and other income from the assets held in the custody account must also be reported.

A list of all participating countries is published annually by the Ministry of Finance. Currently, the list includes all EU member states as well as 23 other countries, which are mainly OECD countries. Important non-EU member states include the United Kingdom, Australia, Canada, Japan, Turkey, Singapore and Switzerland. In addition, Georgia, Thailand and Ukraine are participating for the first time since May 1, 2023. Russia is still listed, but information sharing is currently suspended. The United States and China are not participating countries.

"Clarify "need for reorganization

Austrian capital gains tax (KESt) on investment income is only withheld by domestic custodians and paid to the tax office. Capital gains on foreign custodian accounts or accounts must therefore be declared in the income tax return and (also) taxed in Austria.
If there are divergences between the data from the automatic exchange of information received and the income tax returns filed, the tax office sends question notices to the respective taxpayers. The tax office requests relevant documents and questions the source of the foreign assets. Furthermore, the person concerned is requested to explain in a comprehensible manner whether and how the "foreign income" was included in the tax return.
After being served with such a question notice, a penalty-exempt voluntary disclosure is only possible under certain conditions.

If it is unclear whether foreign investment income was correctly included in the Austrian tax return in the past or if there is a "need for remediation", advice should be sought.