From 2027 the rule is: at the balance sheet date it must be at zero. The new § 8(2a) KStG (Austrian Corporate Income Tax Act) ends permanent withdrawals via the current account. Those who fail to settle in time trigger a deemed distribution plus KESt (Austrian capital gains tax).
The current account – until now a grey area
Many shareholders of a GmbH (Austrian limited liability company) take money out on an ongoing basis: private expenses, advances, outlays. The GmbH books a receivable from the shareholder – the current account grows.
Previous legal position
Whether a constructive distribution existed was a case-by-case question: the decisive factors were the shareholder's intention to repay and creditworthiness (VwGH (Supreme Administrative Court) case law, Rz 969 KStR (Corporation Tax Guidelines)).
The legislature sees potential for tax-saving schemes here – and, with the Budgetbegleitgesetz 2027–2028 (Budget Accompanying Act 2027–2028), draws a clear line.
Typical entries on the current account:
- private invoices paid by the GmbH
- cash withdrawals and advances to the shareholder
- outlays and counter-entries of distributions
§ 8(2a) KStG: settlement by the balance sheet date
If, at the balance sheet date, the GmbH has a current account receivable from a shareholder who is a natural person, it must be settled by the end of that date.
Also covered
persons closely related to the shareholder and indirect shareholdings via interposed companies.
Entry into force
For the first time for financial years ending in calendar year 2027. Standard balance sheet date: for the first time on 31 December 2027. Deviating financial years: already from the balance sheet date of 31 January 2027.
The rule applies to natural persons – even where they hold their interest only indirectly via a holding company. Pure intra-group receivables with no natural person behind them are not covered.
Only the amount above €50,000 is affected
€50,000 allowance per shareholder – only the excess is deemed to be distributed.
The decisive figure is the balance at the balance sheet date. Fluctuations during the year play no role – what matters is the position on the last day of the financial year.
Practical tip
The exact position at the balance sheet date is often not known until weeks later. Build in a safety buffer so that you do not end up just over the limit.
Two ways to settle
- Actual settlement: repayment, contribution or set-off against a resolved profit distribution – before the balance sheet date.
- Arm's length loan agreement: conversion of the current account receivable into a loan on arm's length principles.
The loan agreement must in particular meet the following requirements:
- written form and clear content
- ongoing interest at arm's length rates
- repayment obligation with term and amortisation
- creditworthiness of the shareholder – disregarding his or her shareholding
From audit practice I know: an interest rate alone does not yet make an arm's length agreement.
No settlement? Deemed open distribution
The receivable is deemed to have been openly distributed – on the day after the resolution on the preparation of the annual financial statements, at the latest five months after the balance sheet date.
Example: standard balance sheet date
Balance sheet date 31 December 2027 → deemed receipt at the latest on 31 May 2028. KESt filing and payment within one week.
Capital gains tax (KESt)
27.5 % at shareholder level. If the GmbH bears the KESt, the amount is grossed up – effectively 37.93 %.
A repayment of contributions instead of a distribution is only possible if the contribution evidence account (Einlagen-Evidenzkonto) has sufficient cover and the KESt filing is made on time.
The debt remains – only the tax is gone
The deemed distribution has effect for tax purposes only. Under company law, the GmbH's receivable continues to exist – the shareholder still owes the amount. A waiver by the GmbH would be a prohibited return of contributions.
Withdrawals without a current account
Anyone who books private expenses as business expenses does not circumvent the new rules – the constructive distribution remains, without the option of a repayment of contributions.
As an auditor and tax adviser, I regularly see current account receivables in annual financial statements that have grown over years and whose recoverability nobody has questioned. This is precisely where the legislature is stepping in.
What you should review now
- Establish the current position of all current accounts – including those of closely related persons
- Adjust withdrawal practice for 2026/2027: no more private expenses through the GmbH
- Plan distributions: review retained profits and evidence accounts
- Structure the loan agreement at arm's length – interest, term, amortisation, creditworthiness
- Review shareholding chains and holding structures for indirect exposure
- Plan for the balance sheet date with a safety buffer below €50,000
Conclusion
The current account is no longer an ordinary bank account. From the 2027 balance sheet date, the balance counts. Those who put withdrawals, distributions and loan agreements in order now avoid a distribution that nobody resolved.