April 22, 2022
Austria implements new wage tax exemption for profit sharing payments made to employees
Austria’s latest tax changes for 2022 have now been published in the federal gazette. Among several ecologically driven changes, it includes a new wage-tax exemption for profit share payments to employees. The value of the exemption is up to 3,000 EUR per employee per calendar year and it applies retrospectively for payments from January 1, 2022. Only certain payments qualify for the exemption and the most important aspect is that the awards represent a share of the profit of the employer being distributed to employees in addition to their regular reward package.
A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.
Full text of Tax Alert