The introduction of a tax allowance for scientists moving to Austria (Sec 103a para 1a Income Tax Act) with the Tax Reform Act 2015/2016 has led to many proceedings before the Austrian financial courts. The main prerequisite for an entitlement to the tax allowance – the criterion that the scientist must “move to" Austria – is not defined in the law and has been highly debated in Austrian tax literature. The Austrian Supreme Administrative Court has now clarified the meaning of “Moving to Austria" in its ruling of February 26th, 2020, Ro 2017/13/0018. Basically, the Court ruled that the entitlement to the allowance is linked to shifting the center of vital interests of the scientists to Austria.
