Obligations on Austrian traders regarding employment of foreign workers in Austria
Salary tax regulations do not depend on whether the employee is resident in Austria or abroad. This applies equally to short-term employment, such as with seasonal workers. The double taxation agreements (DTAs) deprive Austria of its right to taxation only insofar as the work is performed outside Austria.
Salary tax deductions
Salary tax is to be deducted according to the tax rate tariff for employees who are resident abroad in the same way as for those resident in Austria, with the exception of the sole earner and single parent credits. It is only if an employee resident abroad performs activities that – if they were self-employed – would trigger the special withholding tax, that salary tax is applied at a fixed rate rather than according to the tariff. This fixed salary tax rate is 20 percent or 25 percent.
More detailed information on the rate of taxation (gross and net) can be found on our web page 'Obligations of Austrian traders in the case of activity in Austria by foreign traders', in the section headed 'Special withholding tax under section 99 of the Einkommenssteuergesetz (Income Tax Act)'.
responsible for content: Federal Ministry of Finance