Taxes in Europe Database v2
1988 Income Tax Law, BGBl. (federal law gazette) No 400/1988, as last amended by BGBl. No 105/2014.
The beneficiaries of the tax are the federal government (67.8%), the provincial governments (20.5%) and the local authorities (11.7%).
Austria, but see also information regarding taxpayer.
In principle, employees and pensioners are taxed by wage tax and self-employed persons are taxed by assessed income tax. The tax scale is the same. Wage tax has to be deducted by employer and transferred to the tax office. Regarding general information on unlimited and limited tax liability (see assessed income tax).
The tax object is the total amount of income regarding the category income from employment (see assessed income tax - seven categories of income). So in principal the tax object are wages and pension payments.
Basis of assessment of wage tax is in general consistent with the basis of assessed income tax (see assessed income tax). Therefore expenses related to income are deductible as well as special expenses and extraordinary burdens and tax benefits. The wage tax is calculated by the employer. Employee have to inform the employer of all circumstances that have an effect on tax computation (e.g. marital status, children, sole earner, single parent, lump sum for commuters, decisions of tax office on tax deductions).
A certain basic income retains tax-free for every person liable to unlimited income tax. According to tax scale in general annual income up to 11,000.00 € is tax-free.
An employee generally receives money as compensation. The payment may also (partly) be made in kind (remunerations in kind). Remunerations in kind must be valued, therefore for most remuneration in kind, such as personal use of a company car, uniform values have been established. The Income Tax Act stipulates specifically that certain remunerations in kind are non-taxable, e.g. meals at the work place, laptop or desktop computers as well as mobile telephone which is used regularly for professional purposes but is also put to personal use.
Other non-taxable payments by the employer are:
Tax credits and deductions (in addition to credits/deductions mentioned in Assessed Income Tax):
Income in €
Average tax rate
Marginal tax rate
up to 11,000
11,000 to 25,000
25,000 to 60,000
in excess of 60,000
Employer is obliged to deduct the income tax (=wage tax) monthly and transmit the tax to the tax office. Voluntary and under certain conditions obligatory assessment is possible.
Tax is deducted by employer monthly and transmitted to tax office. If assessment is opted same procedure as explained regarding assessed income tax.
For certain income-related expenses, special expenses or extraordinary burdens which the employer may already settle in the course of the ongoing payroll accounting a tax-office decision on an allowed deduction is necessary. Normally, the tax-office decision on an allowed deduction is served together with the tax assessment notice on the basis of the employee tax assessment. At the same time, employees receive a note to hand to the employer. The tax-office decision on the allowed deduction applies to the second year following the assessment period.
In general employee liable to wage tax can fill in an application for an employee tax assessment within a period of five years (electronically filling possible). This will be done, if the employee can expect a credit note. This will usually be the case, if
But taxpayer is obliged to undertake a tax assessment, if income exceeds € 12,000.00, and