The Tax Book 2019 Tips for employee tax assessment 2018 The Tax Book 2019 Tips for employee tax assessment 2018 Vienna 2018 Note The wage tax guidelines (these can be considered a summary of the current wage tax legislature and thus as a reference for administration and operational practice) are referenced in the text with margin numbers (“Rz” for German “Randzahl”, with “f” or “ff” for “et seq”). The wage tax guidelines as well as relevant ordinances and decrees can be found also at www.bmf.gv.at in section “Findok”. Imprint Issuer, owner and publisher: Bundesministerium für Finanzen (Federal Ministry of Finance), Public Relations, Communication and Protocol Johannesgasse 5, A-1010 Vienna, Austria www.bmf.gv.at Responsible for the information contained herein: BMF, Directorates General I and IV Translated into English by Cruz Communications GmBH, Vienna Graphics: Inga Seidl Werbeagentur Photos: colourbox.de Printed by: Printing Office of the Austrian Federal Ministry of Finance Copy date: October 2018 Vienna, November 2018 -– PrintedPrinted according according to theto theAustrian Austrian Ecolabel Ecolabel criteria for for printed printed matter, matter, Printing Printing Office Office of the of the Austrian Federal Federal Ministry Ministry of Finance, of Finance, UW-Nr. UW-Nr. 836 836 Further information can be found also at www.facebook.com/finanzministerium Contents I. General information on wage tax and income tax ........................................ 7 A. Personal liability to pay tax .............................................................................................. 8 B. Wage tax or income tax ......................................................................................................10 C. Earnings, income ......................................................................................................................11 D. Income from employment ..................................................................................................14 E. Remunerations in kindRz138–222d .......................................................................................... 16 F. Tax-exempt payments .......................................................................................................... 18 G. Tax-reducing expenses ........................................................................................................ 19 II. Tax rates and tax deductions .......................................................................................21 A. Tax rateRz767 ................................................................................................................................ 23 B. Tax deductionsRz768 ................................................................................................................ 25 C. Deductions in case of low income (refunds of tax deductions and social security refund)Rz811ff .......................... 34 III. The wage tax calculation by your employer ����������������������������������������������������� 37 A. General information ............................................................................................................. 38 B. Travelling between one’s home and place of workRz248aff ................................. 39 C. Tax-exempt payments by the employerRz45ff ����������������������������������������������������������� 46 D. Business tripsRz700–741 ............................................................................................................. 48 E. Employers’ contributions to pension fundsRz756–766g ............................................. 53 F. Miscellaneous remunerationsRz1050ff .............................................................................. 53 G. Bonuses and supplementsRz1126ff ..................................................................................... 58 H. Overtime workRz1145ff .............................................................................................................. 59 I. Supplements for night work and night overtime workRz1142ff .......................... 59 J. Recalculation by the employerRz1189ff ............................................................................ 60 Contents 3 IV. What claims may be entered at the tax office? .............................................. 63 A. Special expensesRz429ff .......................................................................................................... 65 B. Types of special expenses ................................................................................................ 70 C. Income-related expensesRz223ff �����������������������������������������������������������������������������������������78 D. Typology of income-related expensesRz322ff .............................................................80 E. Lump sums for income-related expensesRz396–428 .................................................. 98 F. Extraordinary burdensRz814ff .............................................................................................100 G. Extraordinary burdens for dependantsRz868ff ......................................................... 102 H. Extraordinary burdens with deductibles ................................................................ 103 I. Extraordinary burdens without deductiblesRz839ff ..............................................108 J. Extraordinary burdens incurred by disabilitiesRz839ff .......................................... 116 K. Extraordinary burdens for disabled childrenRz852ff ..............................................123 L. Child allowance until 2018.............................................................................................. 125 M. Official certifications and victim passesRz1244f........................................................127 V. When must Form L 1i be completed?................................................................... 129 A. Income from employment without wage tax deduction ............................... 130 B. Income from employment obtained from abroad ............................................... 131 VI. The procedure at the tax office................................................................................143 A. Employee tax assessment (“annual tax declaration”)Rz908aff .........................144 B. Electronic employee tax assessment ....................................................................... 146 C. Employee tax assessment in paper form ................................................................147 D. Tax credits, additional tax payments, and advance payments ..................150 E. Taxes due on several pensionsRz1022ff .........................................................................154 F. Tax office decision on tax allowancesRz1039ff ........................................................... 155 G. Disclosure pursuant to § 109a of the Austrian Income Tax Act (Einkommensteuergesetz) ....................................... 156 H. Objection to a tax office decision .............................................................................. 158 I. Payment in instalments and deferred tax payment ����������������������������������������� 160 4 Contents VII. Other tax benefits ............................................................................................................163 A. Premium-aided retirement provisionsRz1365ff ���������������������������������������������������������� 164 B. Premium-aided pension schemeRz1321ff ...................................................................... 166 Complaint ........................................................................................................................................168 Payment in instalments or deferred tay payment ���������������������������������������������� 169 Form L1 .............................................................................................................................................. 170 Form L1k ........................................................................................................................................... 174 Form L1i .............................................................................................................................................176 Form L1ab ........................................................................................................................................ 178 Form L1d ...........................................................................................................................................180 Index ���������������������������������������������������������������������������������������������������������������������������������������������������182 First-Hand Information ...........................................................................................................191 Here you will find your competent tax office .........................................................192 Contents 5 I. General information on wage tax and income tax This first chapter contains important basic informa- tion about our tax system and explains various terms in order to facilitate a better understanding of the context. On the next pages you will find details on the following topics: • who is taxable in Austria and what level of income triggers a liability to pay tax • the differences between wage tax and income tax • overview of the seven types of taxable income • as well as information on taxable (e.g. company cars, company housing) and tax-exempt remuner-