Tax base for municipal tax

The tax base for municipal tax includes:

• The monthly gross salaries paid to employees at a business establishment within Austria
• The monthly salaries and other remuneration of any kind given to (shareholder-) directors of capital companies
• For foreign temporary workers: 70 per cent of recruitment fee
• For persons allocated for service by a public body: compensation for salaries
• The monthly salaries and other remuneration of any kind paid to freelancers

Not included in the tax base of monthly gross salaries:

• Pension and retirement benefits
• Voluntary redundancy and severance payments
• Payments of section 3 paragraph 1 (10), (11) and (13) to (21) of the Einkommensteuergesetz 1988, some of which are:
  • 60 per cent of the payments named on section 3 paragraph 1 (10) which employees receive for work abroad subject to tax concessions
  • earnings received by development aid professionals as employees of development aid organisations as part of a development aid programme
    Contributions for future provisions for employees under certain circumstances
    voluntary social contributions to all employees, to certain groups or to the works council fund
  • free or subsidised meals and drinks for employees
  • the non-cash benefits accrued by employees through use of facilities and equipment which are made available by the employer to all or to certain groups of employees
• wages paid to registered disabled persons pursuant to the Behinderteneinstellungsgesetz
• Salaries and other remuneration owed to major stakeholders in a capital company for previous activity within the meaning section 22 (2) of the Einkommensteuergesetz – EStG

Legal bases

Sections 3 and 22 of the Einkommensteuergesetz (EStG)