On 1 April 2025, a significant change for owners of electric vehicles will come into effect in Austria. The Austrian Budget Stabilisation Measures Act 2025 (BSMG 2025) introduces an engine-related insurance tax, applicable to all motor vehicles registered in Austria with a maximum permissible weight of up to 3.5 tons. This provision applies not only […]
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As of 1 January 2024 the new and tax-free “employee bonus” was implemented by the legislator. In contrast to the cost-of-living bonus, the new employee bonus must be fully paid on the basis of a wage-setting regulation. The regulations for the previous cost-of-living bonus have expired with 31 December 2023. The newly established employee bonus […]
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In our previous newsletter we reported on a recent decision by the BFG (BFG 1 December 2023, RV/2100533/2023) strictly interpreting section 29 para. 6 Austrian Tax Criminal Code (FinStrG) (see our newsletter). In this decision, the BFG also makes interesting statements on the issue of fault regarding violations of the prohibition on deduction pursuant to […]
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Company bicycles have become increasingly popular. This is largely due to their positive impact on the climate and tax benefits. In this article, we will look into the tax treatment of lease instalments for employers and employees, as well as the option for takeover after the end of the lease term. Current lease instalments for […]
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Young, innovative and growing start-up companies often do not dispose of the necessary financial means to be able to offer monetary incentives to committed employees. The possibility of granting company shares to employees through employee share purchase plans is not particularly profitable given the current legal situation, since employees have to pay income tax when […]
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As part of the inflation relief packages, a contribution-exempt and tax-exempt inflation bonus has been introduced for employees subject to wage tax obligations. The inflation bonus does not incur wage tax, social security contributions, severance fund contributions, or non-wage labour costs (employer contribution to the family allowance fund (DB), surcharge to the employer contribution (DZ), […]
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For the Austrian Ministry of Finance (BMF), the ruling of the Austrian Supreme Administrative Court (VwGH) of 23 April 2021 (Ra 2020/13/0089) provided the impetus to conduct a pragmatic overhaul of withholding tax relief in the form of the Ordinance on Withholding Tax Relief for Personnel Leasing. Initial situation As foreign employers are subject to limited […]
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Following the approval of the first inflation relief package in the Austrian Parliament at the end of June (see our newsletter of 28 July 2022), the Austrian government published the government bills for the inflation relief package parts II and III on 14 September 2022. At the heart of the package – alongside other relief measures – […]
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The Austrian government has announced relief packages to mitigate the impacts on the population due to the huge wave of inflation. The first inflation relief package (part 1) was passed by the Austrian parliament at the end of June and was published in the Austrian Federal Law Gazette (BGBl.) on 30 June 2022. The package included […]
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In its decision of 16 March 2022, the Austrian Constitutional Court (VfGH) overturned the prohibition of deductions under Sec 20 para 1 subpara 8 Austrian Income Tax Act (EStG) as unconstitutional. This provision prevents the deduction of voluntary severance payments made by the employer to the extent that these exceed the amounts eligible for preferential tax treatment on the […]
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