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Municipal tax in relation to staff leasing

Staff leasing agencies based in Austria

The staff leasing company is liable for the municipal tax in relation to the leasing, provided that the (Austrian or foreign) entrepreneur has a business establishment in Austria within the meaning of the Kommunalsteuergesetz.

The tax must also be paid if

  • workers based at a business establishment in Austria are transferred abroad, up to the end of the sixth month of said employee’s transfer (exception: the staff leasing company has a business establishment abroad to which the workers have been assigned),
  • the employer company has a tax exemption,
  • the employer uses the workers abroad,
  • the employer is not a company (e.g. association).

IStaff leasing agencies based in Austria must pay municipal tax from the seventh calendar month onwards to the municipality in which the employer company’s management is located, if the worker spends more than six full calendar months at this company (six-month rule). If staff are leased abroad, from this point no (Austrian) municipal tax must be paid.

In the event of an interruption to the leased employee’s work (e.g. due to illness, weather conditions or holiday) which lasts longer than a calendar month, the six-month period begins to run again from the end of the calendar month in which the employee returns to work.

Please note

A change of employer, i.e. a transfer to another company, does not constitute an interruption to work. In this case, the six-month period begins to run again in any case from the end of the calendar month in which the change of employer took place, even if the management of the business establishment of the new employer is located in the same municipality.

If a new six-month period begins, the municipality last entitled to collect the tax keeps this entitlement over the following periods:

  • for the rest of the calendar month following the change of employer
  • for the rest of the calendar month until which the interruption to work of more than one month persisted.

Please note

In the event of leasing to a non-entrepreneur, the six-month rule does not apply. In this case, the municipal tax is generally paid to the municipality in which the leasing agency is located.

Staff leasing agencies based abroad

The employer of the workers is liable for the tax, provided that they are an entrepreneur. The tax base is 70 per cent of the recruitment fee (excluding VAT and less any discounts).

Staff leasing agencies based abroad are foreign entrepreneurs which do not have a business establishment for this leasing in Austria. Should a staff leasing company obtain a business establishment in Austria, this will then be considered leasing by an Austrian staff leasing company, and the municipal tax must be paid.

Should the leasing last over six months, the foreign company must set up a business establishment in Austria in the municipality in which the employer company’s management is located.

The place of residence or the nationality of the leased staff or of the leasing agent is irrelevant.

Please note

For detailed information, please contact the competent municipal authoritiesGerman text, the municipal officeGerman text or, in Vienna, the assessment office (Municipal Department 6) (→ City of Vienna)German text.

Please note

If you have an internet connection, the municipal tax declaration must be sent electronically via FinanzOnline (→ BMF)German text.

Further links

Legal basis

Translated by the European Commission
last update: 1 January 2021

responsible for content: Federal Ministry of Finance

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