The deductibility of interest in connection with the acquisition of capital interest in the meaning of section 10 of the Corporate Income Tax Act (Körperschaftsteuergesetz, "KStG") was already introduced as part of the Tax Reform Act 2005 (Steuerreformgesetz 2005) by including a new special provision in section 11 para 1 item 4 KStG. Yet the precise interpretation of the term "interest" was disputed in practice. While the financial authorities were of the opinion that only interest in the proper sense should be deductible for tax purposes, the learned ore unanimously argued that the term should be widely construed and therefore also other costs for procuring money should be deductible for tax purposes.

The Administrative Supreme Court (Verwaltungsgerichtshof, "VwGH") ruled in this connection that costs for procuring money were also included in the interests as defined in section 11 para 1 item 4 KStG. According to the court's legal view the term "interest" as defined in section 11 para 1 item 4 KStG includes all costs in connection with the letting of capital. Money costs are therefore (distributed over the duration) basically deductible for tax purposes.

It is yet to be kept in mind that the "group clause" (Konzernklausel) which has been effective since 2011 does inhibit any deduction in connection with the acquisition of shares within a group. Costs of procuring money in connection with the acquisition of shareholdings within a group are not deductible (VwGH 27 February 2014, 2011/15/0199).