This website uses Cookies. You will accept these by click on the button "continue". For more information read our page "Private Policy".

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 basis

Sections 3 and 22 of the Einkommensteuergesetz (EStG)

Translated by the European Commission
last update: 1 January 2021

responsible for content: Federal Ministry of Finance

Rate this page and help us to improve.