[World Tax News] AI Helps Austria Net EUR 354 Million in Extra Taxes And More

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Editorial Team – [2025] 177 taxmann.com 600 (Article)

World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week:

1. Artificial Intelligence (AI) helps Austria net EUR 354 million in extra taxes

Austria’s Ministry of Finance has announced that the application of Artificial Intelligence (AI) enabled the collection of an additional EUR 354 million in tax revenue during 2024. The Predictive Analytics Competence Center (PACC), a dedicated unit within the Ministry, employed machine learning and text mining tools to detect tax fraud and compliance breaches. Through the review of 6.6 million tax cases and 23.4 million compliance matters, PACC identified instances of false employee assessments, fraudulent tax returns, and fictitious entities.

One case cited involved an agricultural enterprise that concealed vehicle sales, leading to EUR 300,000 in additional tax liabilities. The concealment was uncovered during an external audit when AI-driven cross-verification showed that deregistered agricultural vehicles, recorded in the registration database, were absent from the enterprise’s books of account and asset registers, thereby revealing undeclared resale income.

Looking ahead, the Ministry intends to expand AI deployment, including generative AI, and strengthen collaboration with both domestic and international stakeholders to enhance the efficiency and effectiveness of Austria’s tax administration.

Source – Press release

2. Saudi Arabia enacts new law that enables non-saudis to own property

Saudi Arabia has enacted Royal Decree No. (M/14), published in the Official Gazette on 25 July 2025, introduces a new Real Estate Ownership Law for Non-Saudis.

The legislation abolishes prior restrictions and establishes a clear regulatory framework permitting non-Saudi individuals and entities,whether residents or non-residents,to own or acquire real estate rights within specified geographic zones of the Kingdom. This measure is aligned with the objectives of Vision 2030, aimed at enhancing foreign investment inflows and fostering sustainable urban development.

The law expressly extends eligibility to non-Saudi natural persons, foreign companies, diplomatic missions, international organisations, and Saudi-incorporated companies with foreign shareholders. All ownership or transfer transactions are required to be recorded with the Real Estate Registry. A transfer fee of up to 5% of the property’s value applies to dispositions by non-Saudis.

In cases of non-compliance, penalties may include fines of up to SAR 10 million or the compulsory sale of property through public auction. The implementing regulations detailing registration procedures, applicable territorial boundaries, and compliance obligations are to be issued within 180 days of publication.

Source – Royal Decree No. (M/14)

3. Sweden proposes updates to global minimum tax rules, effective from 2026

Sweden’s Ministry of Finance has released draft legislation to amend the Act on Additional (Supplementary) Tax, which implements the Pillar Two global minimum tax in line with Council Directive (EU) 2022/2523 of 14 December 2022. The proposed amendments align the Act with the administrative guidance issued by the OECD/G20 Inclusive Framework in June 2024, providing further clarifications and interpretative directions on the existing framework.

The revisions address several technical aspects, including the tax treatment of securitization special purpose entities (SSPEs), allocation of taxes, recognition of losses, deferred tax adjustments, hybrid entity rules, and the five-year reversal rule for deferred tax liabilities. Specifically, the amendments:

• Clarify the circumstances under which SSPEs are liable to a top-up tax and the conditions for exemption;
• Introduce detailed rules governing the reallocation of tax costs among permanent establishments, parent companies, hybrid entities, and dividend-paying units;
• Specify how losses incurred by permanent establishments and parent entities impact adjusted income and deferred tax computations;
• Provide recalculation mechanisms based on minimum tax rates and valuation differences between accounting and tax reporting, particularly for deemed and special deferred tax assets;
• Define hybrid and reverse hybrid entities and set out the treatment of their income and tax liabilities across jurisdictions;
• Establish criteria for determining whether deferred taxes are reversed within the prescribed five-year period, including specific exceptions for leased assets and certain investment structures.

The proposed amendments are scheduled to take effect on 1 January 2026, applying to tax years commencing after 31 December 2025. However, taxpayers may elect to apply all or selected provisions earlier, for tax years beginning after 31 December 2023.

Source – Draft legislation

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