The Austrian Federal Fiscal Court recently had to decide whether Austria was allowed to tax the income of a pilot resident in Austria and employed in Denmark by the Scandinavian Airlines System. In the opinion of the court, Art 15 para 3 DTC Denmark applies, which assigns the taxing right to Denmark as an open distribution norm. Austria must then exempt the income from taxation and therefore has no taxing right. As the pilot is not resident in Denmark, the special provision for pilots employed by the Scandinavian Airlines System in Art 15 para 4 DTC Denmark is not applicable. Gustavo Weiss de Resende, Benjamin Beer and Stefan Pregesbauer analyze the decision by the Austrian Federal Fiscal Court.
