- Country Information
- Austria
In this article...
Austria
- What type of employment agreement is recommended in Austria?
- What is the standard probation period in Austria?
- What are the annual leaves in Austria?
- What are the standard working hours in Austria?
- What are the public holidays in Austria?
- Can employees work on public holidays in Austria?
- What are the sick leave regulations in Austria?
- What are the paid and unpaid leave entitlements in Austria?
- What are the 13th and 14th month bonuses in Austria?
- What is the home office allowance and work equipment entitlement in Austria?
- What is the Employee Severance Fund in Austria?
- What are the salary regulations in Austria?
- What is the personal income tax in Austria?
- What is the social security like in Austria?
- How and when are salaries prorated in Austria?
- How are Bonuses taxed in Austria?
How are Bonuses taxed in Austria?
In Austria, bonuses are subject to the same tax regulations as regular salary payments. Here’s how bonuses are taxed:
Tax Treatment
Progressive Taxation: Bonuses are taxed under the same progressive income tax rates as regular income. The applicable tax rates are:
- Up to EUR 12,465: 0%
- EUR 12,465 to 20,397: 20%
- EUR 20,397 to 34,192: 30%
- EUR 34,192 to 66,178: 40%
- EUR 66,178 to 99,266: 48%
- EUR 99,266 to 1,000,000: 50%
- Over EUR 1,000,000: 55%
Special Tax Regime for Non-Recurring Payments: Austrian law includes a special tax regime for special or non-recurring payments, which includes bonuses. These payments, when not exceeding one-sixth of the regular payment, may be taxed at a lower rate. This regime applies to ensure that irregular bonuses are not excessively taxed compared to regular income.
Tax Withholding: Employers are required to withhold income tax on bonuses and remit it to the tax authorities along with regular salary withholding.
For more detailed and updated information, you can refer to the official tax regulation sources: Austrian Federal Law Gazette.
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