Before the start of your retirement Application To ensure that your transition into retirement goes smoothly, you should submit your retirement application to the pension insurance fund about two to three months before your planned retirement date and inform your employer accordingly. Severance payment according to the old scheme (“Abfertigung Alt”) and the new scheme […]
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Whether you work for an employer abroad, are seconded to a foreign company or work remotely from outside Austria, all these complex situations raise the question of which country should tax your employment income. Austria has entered into “Double Taxation Agreements” (DTA) with numerous countries for such cases. 1. Tax liability and tax residence […]
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On 1 April 2025, a significant change for owners of electric vehicles will come into effect in Austria. The Austrian Budget Stabilisation Measures Act 2025 (BSMG 2025) introduces an engine-related insurance tax, applicable to all motor vehicles registered in Austria with a maximum permissible weight of up to 3.5 tons. This provision applies not only […]
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Benefits do not only promote your employees’ wellbeing but also the overall company climate. In our P&O Breakfast from 6 May 2025, we have screened allowances exempt from taxation and social security contributions and summarised what employers have to consider. Below a short overview: Telework Up to EUR 3 per telework day and maximum EUR 300 […]
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In an increasingly globalised world, cross-border use of motor vehicles becomes increasingly important. You will learn in the following blog entry which rules apply for driving vehicles with a foreign registration plate and which penalties are imposed in case of violation. How long a vehicle with a foreign registration plate may be used in […]
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On 11 March 2025, the Austrian Federal Ministry of Finance (BMF) has published the amendment decree 2025 on the Transfer Pricing Guidelines 2021 (TPG 2021). The amendment decree includes significant updates and clarifications regarding the permanent establishment pursuant to tax treaty law. Update of the home office PE concept The concept of home office […]
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On 27 February 2025, the new federal government presented the common government programme for 2025-2029 named “Do the right thing now. For Austria.” (Jetzt das Richtige tun. Für Österreich.). By means of comprehensive measures, the Austrian Income Tax Act, payroll accounting and the employee tax assessment are simplified. Income tax Extension of the maximum tax […]
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As of 1 January 2024, employees of start-ups and young companies have been able to participate in the company success of their employer more easily and with tax benefits by issuing start-up employee shares. This requires, among other things, correct processing in the payroll account and the form L16. Tax and social security contribution benefits […]
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As of 1/1/2024 the new and tax-free “employee bonus” was implemented by the legislator. In contrast to the cost-of-living bonus, the new employee bonus must be fully paid on the basis of a wage-setting regulation. The regulations for the previous cost-of-living bonus have expired with 31/12/2023. The newly established employee bonus is tax-free up to […]
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The amendment to the Austrian Ordinance on the Valuation of Certain Benefits in Kind regarding interest savings includes new provisions on salary advances and employer loans bearing no or low interest. Interest savings on salary advances and employer loans As of 1 January 2024 new methods for calculating interest savings on salary advances and […]
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