Changes to Austria's tax law affecting holding structures

The Budgetbegleitgesetz 2003, recently enacted by Austria's parliament, makes significant amendments to Austria's international participation exemption, especially with regard to the tax treatment of capital gains and losses from a participation in a foreign subsidiary. Gives the background to these amendments and explains the changes to the international participation exemption and discusses the new development regarding outbound dividends and liquidation gains and the change regarding the capital tax on certain indirect contributions.