Tax & Financial Insights
Stay informed about Austrian tax regulations, business matters and financial developments with practical insights from TAX AUSTRIA.
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.
TAX & BUSINESS
Assumed Debt as Consideration for Real Estate Transfer Tax
When land is transferred, the real estate transfer tax (Grunderwerbsteuer, GrESt) is calculated on the value of the consideration, but at least on the land value. Assumed debts can also form part of this consideration. This also applies to debts for which only an internal assumption of performance has been agreed.
TAX & BUSINESS
Artificial Intelligence in the Tax Administration
The use of artificial intelligence (AI) helps the tax office to generate additional tax revenue. In 2024 the authority was able to secure around EUR 354 million in extra tax receipts through the use of state‑of‑the‑art analytical methods.
TAX & BUSINESS
Retention of Special Business Assets
Retaining special business assets when disposing of a co‑owner’s share can lead to the re‑taxation of profit exemptions.
TAX & BUSINESS
Submission of Annual Accounts to the Commercial Register
A change to the regulation on electronic legal communication results in adjustments to the formal requirements for filing accounts.
HR & PAYROLL
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.
TAX & BUSINESS
Hobby Activity Guidelines Maintenance Decree 2025
With the Maintenance Decree 2025, the hobby activity guidelines (Liebhabereirichtlinien, LRL) have been aligned with the economic stimulus package “Housing and Construction Offensive”.
TAX & BUSINESS
More fraud cases in online business transactions
Fraud attempts in electronic commerce have increased significantly. Manipulation of bank details on invoices is particularly common.
HR & PAYROLL
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.
VAT
Turnover threshold for small‑business traders
From 1 January 2025 the turnover threshold for small‑business traders was increased from EUR 35,000 net to EUR 55,000 gross per year. For the calculation of this threshold it is not the receipt of the payment that matters, but when the relevant service was performed.
VAT
Incorrect VAT Advance Returns
Submitting incorrect VAT advance returns (UVA) constitutes tax evasion even if a correct VAT annual return should later have been filed.
VAT
Income Tax Basic Flat-Rate Deduction and Input Tax Flat-Rate Deduction
At the end of June the Federal Council also gave the green light to the 2025 Budget Supplementary Act, which will bring comprehensive changes to the basic flat-rate deduction for income tax (ESt) and to the input tax flat-rate deduction in 2025 and 2026.
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