E. Employers' contributions to pension funds

Are contributions to pension funds tax-exempt?

The contributions that an employer pays for his/her employees into a pension fund, as defined in the Austrian Pension Fund Act (Pensionskassengesetz), are tax-exempt. Contributions to foreign pension funds are tax-exempt only in those cases in which there are statutory obligations, or if they are paid to institutions abroad within the meaning of the Austrian Pension Fund Act (Pensionskassengesetz).

Please remember, however, that the future pensions deriving from these employers' contributions are fully subject to tax liability. If the future pension is based on a pension fund with employee contributions, only one quarter will be taxed. If and insofar as you claim a premium-aided pension premium, the future pension is tax-exempt in its entirety.

The exemption from wage tax also applies to employers' contributions to relief funds or foundations promoting employees.