Tax base for municipal tax


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 2024

Responsible for the content: Federal Ministry of Finance

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