Tax & Financial Insights
Stay informed about Austrian tax regulations, business matters and financial developments with practical insights from TAX AUSTRIA.
HR & PAYROLL
HR & PAYROLL
Half tax rate for the pension lump sum
If a managing director is granted the option of a cash settlement instead of a promised ongoing old‑age pension, he must exercise this option on the day of the business cessation in order to be able to claim any income‑tax advantages.
HR & PAYROLL
Provision of Car Parking and Garage Spaces
The Federal Fiscal Court (BFG) has clarified that providing a free parking space to an employee who holds a valid parking permit does not constitute a taxable benefit in kind.
HR & PAYROLL
The planned new tip flat rate
The Federal Council decided on 28 July 2025 new regulations concerning tips, which will bring changes to social security and labour law.
HR & PAYROLL
Employee discounts also tax‑free for former employees
The Administrative Court (VwGH) has ruled that former employees can also be granted income‑tax exemption in connection with employee discounts.
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Allowances in Real Estate Transfer Tax for Business Transfers
If domestic land is part of business assets, allowances may be available for (partially) gratuitous transfers to a successor, reducing the tax burden.
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Partial pension: New form of reduced‑hours retirement
From 1 January 2026 the new model of partial pension comes into force. The aim is to enable employees to continue working on a reduced basis while receiving a pension. At the same time the existing scheme for reduced‑hours retirement has been revised and access has been restricted.
HR & PAYROLL
Details of the new tax‑free employee premium
The Budget Support Act 2025 introduced a new tax‑free employee premium of EUR 1,000 per year for 2025. Differences compared with previous premiums must be taken into account.
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Holiday work pay and allowances
If an employee is required to work despite a public holiday, they are additionally entitled to holiday work pay. The Federal Fiscal Court (BFG) has now clarified that such holiday work pay cannot be accounted for tax‑free unless it includes an additional allowance for working on a public holiday.
HR & PAYROLL
Tax‑free Participation in Company Events
The Federal Fiscal Court (BFG) has ruled that monetary benefits from company events that exceed the tax‑free amount of EUR 365 per employee do not give rise to wage tax liability when they are granted in the predominant own‑business interest of the employer.
HR & PAYROLL
Leave for Deployments in Major Damage Events
When deployments occur during working hours, the question arises whether employees are entitled to paid leave. The statutory provisions provide a right to continued payment of wages.
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