Forfeiture of goodwill amortization upon the transfer of a business unit within the same corporate tax group

In its decision dated 26 March 2026, the Austrian Federal Fiscal Court of first instance (BFG 26/03/2026, RV/7103092/2020) denied the continuation of goodwill amortization where a business unit is transferred within the same corporate tax group and the interlink between the shares and the business unit is given up. The case is currently pending with the Austrian Supreme Administrative Court (VwGH).

Facts and decision of the BFG

The group parent claimed annual goodwill amortization regarding the shares in a group member running two business units. In the course of an intra-group restructuring, one business unit has been transferred to another group member of the same tax group.  

The BFG has ruled that the goodwill amortization attributable to this transferred business unit can no longer to be recognized from the year in which the business unit has been separated from the original group member, for which shares’ goodwill amortization has been declared,  i.e. where the link of business unit and shares has gone, no goodwill amortization can be claimed. According to the BFG, this applies regardless of whether the transfer of the business unit takes place within or outside the tax group.

To be observed

Besides envisaged restructuring measures also older separations and intercompany transfers of business units (in form of a separation of the shares, for which goodwill amortization has been claimed, and a business unit of this group member) should be checked on a potential forfeiture of Austrian tax group’s goodwill amortization.

Authors: Martina Gruber, Sarah Grössl, Qian Hui Xu