Tax base for municipal tax
Caution
In general, these rules also apply to entrepreneurs from EU Member States in Austria.
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)
Translated by the European Commission
Last update: 1 January 2023
Responsible for the content: Federal Ministry of Finance