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L17 form – filing obligation for foreign employers

The L17 filing obligation for foreign employers without a wage tax PE in Austria has entered a new round. After an initial transition period of one year with an extended filing obligation (see blog entry of 29 January 2021), it will again be necessary this year to identify relevant cases and carry out filing within the […]

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Cryptocurrency and taxes – update on Austria’s ecosocial tax reform act

Cryptocurrencies have significantly increased in importance as an investment option in recent years. The ‘ecosocial’ tax reform in Austria thus includes changes to the tax system to take account of crypto assets. Employees working internationally, who hold crypto assets as part of their private assets, and whose tax residency changes due to an employment contract […]

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New PE definitions of the Austrian Ministry of Finance

With the publication of the Austrian Transfer Pricing Guidelines 2021, the most recent developments on an OECD level related to the definition of a permanent establishment (PE) were partially implemented in Austrian taxation practice.   PE definition in Austrian and international contexts Austrian tax law defines the existence of a PE in several different ways: […]

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Covid Bonus 2021

On 16 December 2021, the Austrian National Council (lower house of parliament) approved not only tax-free Christmas vouchers of up to EUR 365 p.a., but also tax-free COVID-19 bonuses for 2021. (When the legislation will enter into force has not yet been announced).   Below we provide an overview of the most relevant questions:   What is […]

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Potentially higher income tax burden through amendments to the Double Taxation Treaty between Austria and the United Arab Emirates

On 1 July 2021 Austria and the United Arab Emirates (UAE) have signed a protocol amending several key provisions of the Double Taxation Treaty. The most significant changes are made to Article 24 of the Double Tax Treaty. Currently this Article states that the double taxation of Austrian tax residents is avoided by exempting the […]

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New letter ruling on permanent establishments in the case of auxiliary activities within a company group

1 June 2021, the Austrian Ministry of Finance (MoF) published EAS (Express Answer Service) 3432. In this letter ruling, the MoF confirmed its previous view that there is only one set of circumstances in which activities, which by their nature constitute preparatory or auxiliary activities, do not lead to the creation of a permanent establishment […]

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New Austrian legislation on homeworking and its implications for payroll

On 24 February 2021, the Austrian National Council approved the 2nd COVID-19 Tax Measures Act, which provides for non-taxable reimbursement of costs by the employer and a flat rate deduction for business expenses for the employee if homeworking (so-called “home office”) has been agreed. After a year of working from home due to COVID-19, employees or works […]

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Austrian government confirms retroactive change to wage tax deduction for foreign employers

As reported in an earlier article (see blog post from 27.11.2020), the Austrian government announced in December that the wage tax withholding obligation for employers without a wage tax PE in Austria would be repealed with retroactive effect. In accordance with this draft, under the new rules these employers will no longer be required to […]

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Is Home Office the new Trojan Horse?

When the COVID-19 pandemic swept across Europe, more than a few companies faced a challenge that they had put off, or rather overslept, for far too long in the course of the highly discussed  digital transformation: Am I able to let all of my employees work from home ? Assuming that you have provided your […]

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Post-Brexit: Social security implications for cross-border employee assignments after the end of the transition period and recommended actions for employers

Situation to date The United Kingdom left the European Union on 31 January 2020. A Withdrawal Agreement was agreed between the UK and the EU, which entered into force on 1 February 2020, and established the terms of the UK’s orderly departure from the EU. The Withdrawal Agreement provides for a transition period, during which the EU […]

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