The cross-border transfer of assets within one business unit or the cross-border transfer of the whole business unit or partial business units generally triggers immediate taxation under sec. 6 no. 6 Income Tax Act (EStG). If the transfer of assets/businesses is made to an EU country (or Norway), taxation in Austria can be deferred until the sale or the transfer to a third country of the transferred assets. In connection with the cross-border transfer of inventions, the question arose whether the special tax regime laid down in sec. 38 EStG (using half the average tax rate on certain income from inventions) is applicable on the deferred taxation of transfer if the preconditions for the application of sec. 38 EStG are fulfilled in later years. The Ministry of Finance stated that sec. 38 EStG is also applicable on the deferred taxation of the transferred inventions if the relevant preconditions are fulfilled in later years.