a) Which transactions must be documented (all transactions with associated enterprises, or only those which exceed a particular threshold)?
All transactions with associated enterprises must be documented.
b) What is the definition of “associated enterprises” for the purposes of this requirement?
The definition of “associated enterprises” complies with Art. 9(1) of the OECD Model Convention: (i) an enterprise which participates directly or indirectly in the management, control or capital of another enterprise or (ii) where the same persons participate directly or indirectly in the management, control or capital of two enterprises.
c) For EU countries, is the content of the documentation similar to that described in the EU Code of Conduct on transfer pricing documentation for associated enterprises (“EU TPD”)? If not, are taxpayers entitled to choose between the local requirements and the EU TPD?
Documentation in line with the EUTPD will be accepted as core documentation (cf. Transfer Pricing Guidelines Rz 309). The Austrian tax authority may however request further information and documents during a tax audit (cf. Transfer Pricing Guidelines Rz 309 referring to sec. 3.18 of the EUTPD).
d) Do taxpayers which are not established in your jurisdiction need to undertake to provide any specific information upon request? Can your tax authorities require the taxpayer in your jurisdiction to provide information which is located in another state?
Such a commitment is not requested. In general, the tax authorities may request information from any person even if it does not concern its own tax matters (sec. 143(1) of the Austrian Federal Fiscal Code). Further, according to prevailing case law, there is an increased obligation to cooperate with the tax authorities in cases with international elements, such as transfer pricing issues. In practice therefore, the tax authorities usually request information – including information regarding foreign group companies – from the Austrian taxpayer.
e) If comparable studies are to be provided, do the tax authorities generally accept regional benchmark studies (e.g. pan-European benchmark studies)?
There is no restriction in this respect, i.e. regional benchmark studies are accepted.
f) What language(s) are to be used by taxpayers in submitting the transfer pricing documentation?
In practice, transfer pricing documentation in the German or English language is accepted.