Austria levies a municipal tax on the total salaries and wages an enterprise pays to its employees. Alexander Zeiler examines the circumstances under which this municipal tax falls within the scope of tax treaties. In addition to a general analysis, this article specifically covers the application of the tax treaty between Austria and Germany, which contains a specific rule regarding the Austrian municipal tax. Moreover, the practical principles concerning the prevention of double taxation related to the municipal tax in cross-border situations are illustrated.
