Factsheet for measure
AT-2020-14/1247
–
Updated
– measures in Austria
Tax exemption for COVID-19 bonuses
Steuerfreistellung für COVID-19 Bonuszahlungen
Background information
Some companies pay their employees specific bonus payments for specific burdens or hardships caused by the COVID-19 pandemic, e.g. in the retail sector, healthcare and nursing care, or the Austrian railways. Bonus payments have been negotiated in some collective agreements, but also individual employers have opted for such premiums.
Content of measure
With the third COVID-19 law issued on 4 April 2020, a tax exemption for bonus payments to employees was includes. It is in connection with special burdens due to the COVID-19 crisis up to the amount of €3,000 was passed.
This tax exemption is not limited to any sectors or professions and only applies to payments in connection with the COVID-19 crisis. Any such connection must be documented. The recipient does not need to face any particular difficulty (e.g. wearing masks during work). Furthermore, the payment has to be an additional payment that has not usually been granted before; however, it does not have to be a one-time payment: The tax exemption also applies to recurring bonus payments in 2020 up to a total amount of €3,000. The tax-free bonus can also be granted for employees in short-time work or for home office work. The bonus payment is also exempt from social security contributions, but not exempt from municipal tax, the employer's contribution and the mandatory contribution to the Federal Economic Chamber.
Updates
The following updates to this measure have been made after it came into effect.
|
21 October 2022
|
The measure was extended to 2023.
|
|
20 December 2021
|
On 20 December 2021, the national parliament decided that COVID-19 bonus payments would also be tax free up to an amount of €3,000 for the year 2021 (to be paid until February 2022).
|
Use of measure
Unknown.
Target groups
Actors and funding
|
Actors
|
Funding
|
National government
|
No special funding required
|
Social partners
Social partners' role in
designing the measure
and form of involvement:
|
Trade unions
|
Employers' organisations
|
|
Role
|
Unknown
|
Unknown
|
|
Form
|
Not applicable
|
Not applicable
|
Social partners' role in the
implementation, monitoring and assessment phase:
-
Unknown
-
Main level of involvement: N/A
Involvement
The social partners' involvement is unknown.
Views and reactions
The social partners' views are unknown.
Sources
-
04 April 2020: Bonus payments to employees due to the corona crisis - Tax exemption FacebookTwitterXINGLinkedInTo press
(www.wko.at)
-
04 April 2020: Third COVID-19 Act
(www.ris.bka.gv.at)
