F. Tax-exempt payments

Which remunerations and payments are not taxed?

The following are the most important tax-exempt payments:

Family allowance
Maternity allowance and similar remunerations under the statutory social security system Rz 41 ff
Childcare benefits Rz 45
Accident pensions
Nursing care allowance and contributions to care costs, pensions from long-term care insurance (= long-term care annuities)
Tips for employees

Certain benefits by the employer are also tax-exempt (see page 58).

Which tax-exempt payments may have an effect on the income tax?

There are certain income substitutes which, in fact, are non-taxable but increase the tax due on the other income in the event of a possible assessment (the so-called special progression proviso). These include the following remunerations:

Unemployment benefits, poverty relief assistance or continued education benefits, as well as temporary assistance for Federal employees Rz 45
Certain remunerations pursuant to the Austrian Army Fees Act (Heeresgebührengesetz) Rz 105
Certain remunerations pursuant to the Austrian Community Services Act (Zivildienstgesetz) Rz 106

If a person does not only earn the above-mentioned tax-exempt income substitutes during a calendar year but also realises other taxable income (e.g. salary, pension), this taxable income must be extrapolated fictitiously, for computation of the full tax progression, as if they had also been (continued to be) earned while receiving the income substitutes.
The fictitious total income is then used to determine the average tax rate, which is applied to determine the tax due on the actually taxable income—namely the salary, the pension or the other taxable current income.

The tax may, however, not be higher than what would be the result if the income and the income substitutes had been taxed jointly. Rz 113 ff

Tax-exempt flat-rate travel allowances Rz 92k–92l

Since the year 2023, flat-rate travel allowances paid out by non-profit sports associations to athletes are tax-exempt up to an amount of € 120 per day of engagement, or a maximum of € 720 per month. These amounts are tax-free allowances: If higher flat-rate travel allowances are paid out, the excess amounts must be taxed.
Payment is only allowed for days of engagement, meaning days on which training or a competition occurs. If only tax-exempt flat-rate travel allowances are paid in the calendar year 2024, the sports club must submit a notification to the tax office using Form L 19 by the end of February 2025 at the latest.
If a pay slip is submitted (e.g., because other remunerations are also present), the flat-rate travel allowances must be included in the pay slip (Form L 16). The received travel allowances do not have to be declared if the association has already recorded and submitted them to the tax office using form L 16 or L 19.

Note
If the conditions for the payment of flat-rate travel allowances to athletes are not met, or if an excessive amount remains untaxed, as a payee, you are required to submit a tax return to the tax office (see page 168).

Tax-exempt lump-sum allowance for volunteers

From calendar year 2024, voluntary contributions from a non-profit, benevolent, or ecclesiastical organisation to volunteers are exempt from income tax up to € 30 per day or € 1,000 per year (small lump-sum allowance for volunteers), provided the volunteer does not receive a flat-rate travel allowance from the organisation or an associated entity and does not earn any income from self-employment, employment, or commercial operations, or other income from an activity requiring comparable training or qualifications.

For certain volunteer activities (e.g. related to benevolent purposes, disaster relief operations, or roles as trainers or instructors), up to € 50 per day or € 3,000 per year can be left tax-free (large lump-sum allowance for volunteers). These must constitute a voluntary allowance and not payments, such as those under an employment relation.

If both small and large lump-sum allowances for volunteers are exercised in the same calendar year, no more than € 3,000 can be received tax-free in the calendar year.
Any amounts exceeding this limit are considered income from services (other income). The organisation must maintain records of payments made to volunteers and, if the statutory limits are exceeded, submit the required information using the official form (E 29) to the tax office by the end of February of the following year.