Author: Europe News Desk

Austria is doubling on financial literacy as a core pillar of economic self-determination, equity, and long-term national resilience. At its fifth meeting at the Ministry of Finance, the Financial Literacy Council outlined strategic priorities for the next two years and set the groundwork for a follow-up strategy beyond 2026. The session marked a milestone by formally including the Federal Ministry for Women, Science and Research and appointing the Austrian National Bank (OeNB) as permanent co-chair. Finance State Secretary Barbara Eibinger-Miedl chaired the meeting, joined by Education Minister Christoph Wiederkehr, Social Affairs State Secretary Ulrike Königsberger-Ludwig, and OeNB Governor Robert Holzmann.…

Iceland’s national tax authority, Skatturinn, has secured two major honors at the 2025 Public Sector Innovation Awards (Nýsköpunarverðlaun hins opinbera), highlighting the country’s growing reputation as a leader in data-driven public services and artificial intelligence. The awards, organized by the Icelandic Financial Management Authority (Fjársýslan), aim to spotlight breakthrough projects and initiatives that improve quality and efficiency in public administration. Data Innovation Award Recognizes Citizen-Centered Transformation Skatturinn was recognized for its strategic use of data analytics and emerging technologies to enhance service delivery for the public. By leveraging advanced data infrastructures, the agency has streamlined communication with taxpayers, improved processing…

In a move that could significantly alter how multinationals structure their UK operations, the UK government has unveiled draft legislation proposing landmark reforms to its transfer pricing (TP) and permanent establishment (PE) rules while signaling the end of the country’s much-debated Diverted Profits Tax (DPT). The proposals, published by HM Revenue and Customs (HMRC) on April 28, form part of a broader effort to modernize UK tax law and better align it with OECD standards and international practice. The government is seeking feedback by July 7, with legislation expected in the Finance Bill 2025-26 and the earliest implementation slated for…

The UK’s independent school sector is experiencing significant financial pressures due to the introduction of a 20% Value Added Tax (VAT) on school fees, effective January 2025. This policy change, combined with years of escalating costs, is prompting many families to reconsider private education for their children. Escalating Costs and Financial Strain Private school fees have been on an upward trajectory, with some institutions justifying increases through investments in facilities like drones and high-end equipment. The addition of VAT exacerbates these costs, pushing annual fees for day schools in London to over £50,000 for two children. This financial burden is…

Germany is preparing to impose a 10% levy on revenues earned by major online platforms such as Alphabet’s Google and Meta’s Facebook, marking the most assertive effort yet by the new Merz government to curb foreign tech dominance and reclaim what it calls “rightful contributions to society.” In an interview with Stern, newly appointed Culture Minister Wolfram Weimer revealed that his ministry is finalizing legislation to tax online giants operating in Germany. The levy would apply to revenue earned from digital services within the country’s borders, not just profits a detail that positions it as a direct challenge to the…

Italian financial authorities have unveiled a wide-reaching tax evasion scheme allegedly orchestrated by a network of Chinese-run businesses, raising alarms over threats to both Italian public revenues and broader European Union financial integrity. According to a statement by the Guardia di Finanza in Pordenone, a total of 15 Chinese nationals are under investigation for orchestrating a €10.5 million ($11.95 million) VAT fraud operation involving 13 companies across Italy’s Friuli region. The alleged fraud resulted in €5.5 million ($6.26 million) in unpaid VAT alone. Fictitious Invoices, Shell Companies, and Fraudulent Filings The accused companies allegedly manipulated tax returns using fictitious invoices…

Austria’s tax and legal landscape saw a series of impactful developments in May 2025, ranging from court rulings on corporate governance to evolving packaging laws and EU-driven cybersecurity obligations. Below is a roundup of the key highlights affecting businesses and professionals. Supervisory Board Members: Liability for Inaction Clarified The Austrian Supreme Court issued a significant ruling on the duties of supervisory board members, distinguishing their responsibilities from those of management boards. The court emphasized that supervisory board members must monitor management and assist in major decisions. Notably, they can be personally liable for any damages resulting from failure to act…

A recent ruling by the Swedish Tax Court has clarified the VAT treatment of business asset transfers, particularly in cases where the recipient entity engages solely in tax-exempt activities. In Advance Notice No. 76-24/I, the court evaluated whether a planned transfer of brokerage operations from a parent company to its wholly owned subsidiary would qualify as a supply of goods or services under Chapter 5, Section 38 of the Swedish Tax Code often referred to in EU contexts as the VAT Act. Case Overview The taxpayer in question is the sole owner of a subsidiary. Currently, the parent company conducts…

As France embarks on its 2025 fiscal journey, significant tax reforms have been introduced, impacting domestic and international taxpayers. These changes aim to enhance fiscal equity, address budgetary challenges, and align with global taxation trends. Adjusted Income Tax Brackets Reflecting Inflation In response to inflationary pressures, France has revised its income tax brackets for the 2025 fiscal year (applicable to 2024 income). These modifications aim to preserve purchasing power by aligning tax thresholds with inflation rates. Introduction of the 20% Minimum Tax for High Earners (CDHR) A pivotal reform is the Contribution Différentielle sur les Hauts Revenus (CDHR), ensuring that…

Russia is moving to deepen its digital transformation of tax administration, with the Federal Tax Service (FNS) introducing enhanced tax monitoring protocols for 2026. To expand real-time compliance oversight, companies planning to enter the tax monitoring regime must submit a strategic roadmap and timeline (“plan-graph”) by July 1, 2025. The tax monitoring system, a cornerstone of Russia’s advanced tax administration reform, offers select corporate taxpayers an alternative to traditional tax audits. Instead, participating companies engage in real-time information sharing and continuous compliance through a digital interface with the FNS. Who Must Submit What? These documents are being developed in collaboration…