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20.05.2010

Referring to false statements recently published by the media:
Clarifying statement on the subject of income tax and group taxation

  • The profit reported in the balance sheet is achieved in 19 countries across Europe, foreign subsidiaries pay the respective national income taxes locally
  • Group taxation is applied, but NO losses of foreign subsidiaries are offset against Austrian profits
  • The balanced tax balance sheet based on the domestic result in accordance with the Austrian Commercial Code is the reason why no income taxes were incurred
  • Bank Austria pays around EUR 400m in other taxes and levies each year

In view of the persistently rumoured false claim that the bank is not paying any tax in Austria on the net profit of EUR 1.1bn in 2009 due to the offsetting of foreign losses under the domestic group taxation regime, Bank Austria would like to emphasise the following clarification:

The Group net profit of Bank Austria amounting to EUR 1.1bn is the sum of the results from 19 countries, determined on the basis of the International Financial Reporting Standards (IFRS). The profits of the foreign subsidiaries are taxed locally in line with the origin principle. In contrast, in Austria tax is only paid on the portion generated domestically (based on the balance sheet in accordance with the Austrian Commercial Code) and this is calculated in accordance with the prevailing tax regulations.

Domestic group taxation gives corporate groups liable to tax the option of also offsetting foreign profits and domestic losses against each other. However, Bank Austria does not make use of this regulation. This means that NO losses of foreign subsidiaries are offset against Austrian profits as part of group taxation.

In Austria, the 2009 tax balance sheet of Bank Austria based on the Austrian Commercial Code (UGB) was balanced and consequently no income taxes were incurred. The reasons for this were significant valuation differences between the balance sheet under UGB and the balance sheet under IFRS and the tax-exempt nature of certain income such as dividends and capital gains.

In general, with 10,886 employees in Austria, Bank Austria pays around EUR 400m in various taxes and levies each year.

Enquiries: Bank Austria Press Office Austria
 Martin Halama, Tel. +43 (0) 50505 – 52371;
 e-mail: martin.halama@unicreditgroup.at
 Tiemon Kiesenhofer, Tel. +43 (0) 50505 - 52819;
 e-mail: tiemon.kiesenhofer@unicreditgroup.at

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