Non-resident lenders of securities / Beschränkt steuerpflichtige Verleiher von Wertpapieren

In today's banking practice it is a usual way of liquidity planning to enter into securities lending contracts with customers who lend their securities (often shares) to the bank against a cash-collateral forwarded by the bank. The bank, as the securities' borrower, enters into the obligation to re-transfer securities of similar kind and nature to the securities lender after the term of the securities lending. In addition, the bank, as the borrower of the securities, must pay to the lender of the securities a lending fee and a manufactured dividend for dividends
received during the term of the securities lending. In the following, Walter Loukota analyzes in how far such lending fees and manufactured dividends from Austrian shares paid by the borrower to non-resident lenders can be subject to withholding tax and source taxation in Austria.