F. Discretionary assessment of evidence

What is a tax office decision on tax allowances?

A tax office decision on tax allowances relates to certain income-related expenses, special expenses or extraordinary burdens that the employer may already settle in the course of the standard payroll accounting. Thus, you pay less wage tax during the year. For the year 2024, the discretionary assessment of evidence will be issued for the first time only upon application. At the same time, you will receive a notification for presentation to the employer. The tax office decision on tax allowances applies to the second year following the assessment period. Hence, the tax office decision on tax allowances and the notification to the employer for the calendar year 2026 are annexed to the income tax assessment for the calendar year 2024. This tax office decision on tax allowances considers your tax allowances—based on the year 2024—preliminarily already for 2026. If the actual expenses in 2026 are higher than those in the tax office decision on tax allowances, this will be offset in the course of the employee tax assessment. An additional credit note may be expected.

If your expenses are lower, additional tax payments will generally become due. If it is uncertain whether you will have similar expenses in the second following year as in the base year, do not apply for a discretionary assessment of evidence in the course of the employee tax assessment, in order to avoid additional tax payments. There is also the possibility to apply for a tax office decision on a lower amount of tax allowances.

You can also amend the note to the employer to indicate lower tax allowances or not present the note to the employer at all. The tax office can also take the initiative and fix a lower amount for the tax allowances, if certain expenses are obviously incurred only on a one-off basis.

Irrespective of the employee tax assessment, you may apply for a tax office decision on tax allowances for the current year under certain circumstances by the 31st October at the latest:

• If additional income-related expenses of a minimum of € 900 will be incurred in the current calendar year.
• If expenses to clear up damage due to disasters (floods, damage caused by storms) will be incurred.

Note

No tax office decision on tax allowances will be issued:

• for an annual tax allowance of less than € 90 and if prepayments for income tax need to be made,
• to employees having limited liability to tax,
• to employees who have opted for unlimited tax liability pursuant to section 1 para. 4 of the Austrian Income Tax Act 1988 (EStG, Einkommensteuergesetz).