Please be aware that this site is informational only, and many external factors, unique to your company might apply. Each company must make their own decisions about how they meet their tax obligations.
In Austria, companies are responsible for calculating the wage tax for employee remuneration, including certain reimbursed business expenses which may be considered as income. When computing the wage tax, the employer also needs to take into account certain tax exemptions or tax benefits such as:
- Miscellaneous bonuses, supplements and overtime work payment
- Business trips (mileage allowance as well as per diem allowances for business trips)
- Traveling between home and the workplace – lump sum for commuters and transportation organized by an employer
Many employers pay allowances to employees to reflect expenses they incur in their role. These allowances are generally administered though collective bargaining agreements. In Austria, the rights and entitlements arising from the employment relationship are not regulated by law, but are exclusively secured by the collective agreement which vary by industry.
For companies that do not fall within any collective agreement, the federal wage tax regulation can be applied. We’ll cover some of the more typical employee business expense reimbursements below from the federal level.