Tax concessions
Last reviewed 21 Aug 2023
Direct
Research premium: 14 % of expenditure; as of 2012 an expert report of the Austrian Research Promotion Agency (FFG) is necessary
Contract research: the client has a premium of 14 % of a maximum of EUR 1 million, as far as contractor does not apply for premium
Indirect
Income tax concessions, e.g.
monthly gross income up to approx. EUR 13,700, from then gradually increase up to 55%.
Certain profits: half personal income tax rate e.g. for the sale of a business unit in case of termination of business activities or gains spread over 3 years;
Capital income withholding tax: 25% (e.g. cash deposits with a financial institution) or 27.5 % (e.g. capital gains, dividends, or cryptoassets)
Tax on profits generated by real estate transactions: 30%
Tax credits
Adjusted to the level of inflation
Family Bonus Plus:
- until the children’s age of 18: EUR 2,000 pa.;
- as of the children’s age of 18: EUR 700 pa;
Children surplus:
EUR 700 per child and year
Sole earner deduction pa.:
EUR 612 for one child;
EUR 828 for two children
for each additional child + EUR 273
Single parent deduction pa.:
EUR 612 for one child;
EUR 828 for two children
for each additional child + EUR 273
Child deduction:
EUR 70.90 / month for each child who is living in the EU/EEA or in Switzerland
Alimony deduction:
EUR 38 / month for the first child
EUR 56 / month for the second child
EUR 75 / month for each additional child if the child is living in the EU/EEA or in Switzerland.
If in employment / pension income p.a.:
Transportation deduction up to EUR 1,300
Retirement deduction up to EUR 1,502
Allowances and exemptions
Profit allowance:
Investment-related profit allowance of up to 13% of taxable profits over EUR 33,000 (except for gains on disposal); reduction of profit allowance for profits between TEUR 33 and TEUR 583, i.e. max. profit allowance
EUR 46,400 per year; basic allowance of EUR 4,950 for profits up to EUR 33,000 per year for all trade and business income (in case of lump sum option only basic allowance)
Investment allowance:
For certain depreciable fixed assets; acquisition/production after December 31, 2022. Basically, 10% of the acquisition or production costs or 15% if the assets are in the area of greening.
For purchases/production between November 2025 and December 2026, the temporary increase in the IFB of 20% or 22% applies if the assets are in the field of greening.
Cap: for acquisition or production costs of not more than EUR 1 million per business year.
Requirements: operating income, determination of profit by balance sheet or full receipts and payments accounting (cash basis accounting).
Unless exceptions apply.
Government subsidies
Government subsidies for home loan and retirement savings
Grant for employers for sick leave of employees – grant from AUVA
Training of employees by Public Employment Service Austria (AMS)
Interest subsidies from Austria Wirtschaftsservice (AWS)
Subsidies for electro-mobility: the acquisition of electric cars, loading facilities etc. is subsidised.
The government's most important aid measures in connection with COVID-19 can be found on our website at: https://www.tpa-group.at/de/tag/covid-19/
