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 provided by the employer are also tax-exempt (see page 58).
Which tax-exempt benefits may have an effect on income tax? There are certain income substitutes that are tax-exempt but increase the tax on other income in the event of a tax assessment (known as the special progression clause). These include the following remunerations:
- Unemployment benefits, poverty relief assistance or training allowance, 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 Civil Service Act (Zivildienstgesetz) Rz 106
If, during a calendar year, a person receives both the aforementioned tax-exempt income substitutes and other taxable income (e.g. salary, pension), this taxable income must be notionally extrapolated for the purpose of calculating the full tax progression, as if it had also been received (continued to be received) during the period in which the income substitutes were received. The notional 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.
However, the tax may not be higher than that which would result if the income and the income substitutes were taxed together. Rz 113 ff
Tax-exempt flat-rate travel allowances Rz 92k Since 2023, flat-rate travel allowances paid 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, the excess amounts must be taxed. Payment is allowed only for days of engagement, meaning days on which training or a competition occurs. If only tax-exempt flat-rate travel allowances are paid in calendar year 2025, the sports club must submit a notification to the tax office using Form L 19 by the end of February 2026 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, you, as the recipient of the payment, are required to submit a tax return to the tax office (see page 168).
Tax-exempt lump-sum allowance for volunteers As of 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. in connection with charitable 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 made, for example, under an employment relationship.
If activities for both small and large lump-sum allowances for volunteers are exercised in a calendar year, no more than €3,000 can be received tax-free in the calendar year. Any amounts exceeding this limit are considered to be income from benefits (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.