Employee discounts also tax‑free for former employees

The Income Tax Act (EStG) provides, under certain conditions, a tax exemption for so‑called employee discounts where the benefits – such as reduced‑price products or services or special conditions – are granted to specific groups of employees. Until now, the view had been that only benefits given to current employees fell under the exemption. This interpretation has now been rejected by the VwGH. Accordingly, persons receiving income from previous employment relationships are also to be classified as employees. The tax exemption therefore also applies to former staff, provided the benefit is granted to all employees or at least to a particular group.

Conclusion
Through the VwGH case law it has been clarified that former employees can also benefit from the tax exemption for special employee advantages, provided the discounts stem from the former employment relationship and are granted on a group basis.