B. Income from employment obtained from abroad
Who has income from abroad and has to file Form L 1i?
Income from employment obtained from abroad is income that you have received
- as a cross-border worker, or
- from a foreign employer who is not required to deduct wage tax in Austria; or
- from a foreign diplomatic mission or an international organisation in Austria (e.g. UNO, UNIDO) or
- from a foreign pension, or
- on the basis of a double tax convention, or
- on the basis of the progression proviso that must be declared in Austria.
This includes, for example, foreign sickness benefits, foreign unemployment benefits, and foreign insolvency benefits. Such income is taxable in Austria.
If you have received any income from employment abroad that is taxable in Austria, please complete Form L 1i and please also inform the tax office of these incomes under code 453 in Form L 17 (wage statement/pay statement) or under code 359. For all other foreign income, in addition to Supplement L 1i, an income tax return (Form E 1) must be used instead of Form L 1, and code 440 must be completed.
If you are subject to limited tax liability and have also received other income, use only Form E 7 (income tax return for limited tax liability). In this case, Supplement L 1i may not be used.
Who must complete Form L 17?
If the income is fully taxable in Austria and domestic tax benefits are to be taken into account, please submit Form L 17, which must be completed in these cases, to your tax office. Please refer to the completion instructions L 17a and L 17b if you need assistance completing this form. You must in any case submit Form L 17 to the tax office if your foreign income subject to tax liability in Austria is paid out 13 or 14 times per calendar year (with extra payments). The tax benefits, such as the preferential tax rate for extra payments or taxes withheld in the source country related to this income, can be considered only by means of a fully completed Form L 17.
In Form L 1i, you must disclose the number of wage statements/salary statements, as well as all income-related expenses related to this foreign income that are not to be entered in Form L 1 or Form L 17. Private health insurance contributions on the basis of a foreign insurance obligation must, in any case, be entered under code 187 in Form L 1i. These private health insurance contributions must not be included under codes 357/347 in Form L 17. Other income-related expenses must be recorded in Form L 1i under code 154 or code 544.
If your employer has completed Form L 17 in full as required and filed it electronically via elda.at, there is no need to attach an additional Form L 17 to the tax assessment, provided you believe the information has been completed correctly.
Simplified procedure if you receive income from abroad without extra payments (Code 359 in Form L 1i)
If you receive foreign income (active or retirement income) for which Austria has the right of taxation, but which you only receive twelve times in a calendar year (without additional payments), you may simply record the amount of your foreign income (gross revenue minus income-related expenses) in Form L 1i under code 359. The social security contributions taken into account in determining income must be reported under code 183. For proper consideration of the statutory tax deductions, please inform the tax office also as to whether the foreign income includes only pension benefits. Please also notify the tax office of any foreign tax that may be credited in Austria under code 377.
If the two aforementioned requirements are met for your foreign income, you do not have to complete Form L 17. Foreign income subject to progression must only be entered under code 453 in Form L 1i.
Who must complete code 453 in Form L 1i?
In the case of unlimited tax liability in Austria, code 453 in Form L 1i must be used to report foreign income from employment (including pensions, unemployment benefits, sickness benefits, insolvency benefits, etc.) that is tax-exempt in Austria, but subject to a progression proviso. The amount of foreign income must be indicated when the national progression proviso or a double tax convention with exemption methods applies, or when an Austrian employer submitted a pay slip without withheld wage tax for work performed abroad.
Under code 453 of Form L 1i, income taxable abroad must be entered net of social security contributions that are due on these amounts and other income-related expenses (gross revenue minus income-related expenses). Social security contributions must be reported under code 184 in Form L 1i. In the checkbox field, it is mandatory to tick whether these social security contributions can be considered tax-reducing abroad (one of the boxes must be ticked). Other income-related expenses must be entered under code 493 in Form L 1i. These codes must be fully completed, and a value of zero should be entered if applicable. For foreign pension income, you must also complete code 791 in Form L 1i to ensure that tax deductions are automatically taken into account.
When are you required to file an employee tax assessment with Supplement L 1i (mandatory assessment)?
The primary distinction is between unlimited and limited liability to pay taxes (see page 8). An assessment must be carried out if you are subject to unlimited tax liability because in 2025 you had your place of residence or regular domicile in Austria and have received income:
- as a cross-border worker
- from a foreign employer who is not obligated to deduct wage tax in Austria
- from a foreign diplomatic mission or an international organisation in Austria (e.g. UNO, UNIDO)
- from a foreign pension
- from third parties without wage-tax deduction
- from start-up employee profit-sharing
- that is also taxed abroad and where the double tax convention determines the credit method
- that is tax-exempt in Austria, but subject to the progression proviso.
A mandatory assessment with Supplement L 1i must also be filed if in 2025 you were subject to limited liability to pay taxes because you did not have a place of residence or your regular domicile in Austria, but
- you received income for an activity in Austria from a foreign employer who is not obligated to deduct wage tax in Austria, and under a double tax convention Austria has the right to tax this income.
A mandatory assessment will also be made if an employee subject to limited liability to pay tax
- has, at least temporarily, received income subject to wage tax from several employers at the same time that was taxed separately when deducting wage tax.
- if, in addition to income subject to wage tax, other income subject to assessment exceeding €730 per year was received.
In this case, please submit Form L 1 along with Supplement L 1i. You can find general information about mandatory tax assessments in Chapter VI.
In which cases can you apply for an employee tax assessment and possibly receive a refund of any withheld tax or wage tax (employee tax assessment upon application)?
You have a limited liability to pay taxes because in 2025 you did not have a place of residence or your regular domicile in Austria, but received taxed income in Austria:
- from an employer who has deducted wage tax
- from a domestic pension, or
- from an employment as a writer, lecturer, artist, architect, athlete or performer in an entertainment show, where an amount of 20% or 25% withholding tax, respectively, was deducted.
If wage tax is deducted in Austria for an employee with limited tax liability, the wage tax is calculated as for any other Austrian employee. However, if there is no mandatory assessment, in the case of a voluntary assessment of the tax assessment base, i.e. before calculating income tax, an amount of €10,888 is added (see page 8).
Where are persons resident in Austria taxed for foreign income?
This question can be answered only on the basis of the double tax convention between Austria and the respective source country. The double tax convention determines which country is entitled to collect taxes on these earnings (you will find a list of all double tax conventions at bmf.gv.at). This approach avoids income being taxed twice. For persons resident in Austria (pursuant to double tax conventions), as a rule Austria has the right to tax their global income. The domicile for tax purposes is the country in which the taxpayer is resident, as defined by the respective double tax convention, i.e. has a permanent residence. If an individual has a residence in both contracting states, this constitutes a so-called dual residence. Therefore, determining residency depends on where the focal point of vital interests lies. The distinction primarily considers the personal and economic circumstances of the taxpayer.
If the double tax convention determines that Austria has the right to tax, you must report these foreign incomes in Form L 1i under code 359 and possibly also in Form L 17. If you reside in Austria and the right of taxation is (also) allocated to the foreign country, it must be determined whether double taxation in Austria is avoided by applying the exemption or credit method.
Note
Persons who reside in Austria and receive pensions from Germany (retirement pensions) are sent tax forms from the tax office in Neubrandenburg. German pension payments from statutory social security are exempt from tax in Austria under the Austro-German double tax convention. However, Austria considers the German pensions in the calculation of the tax on the remaining income that is taxable in Austria (progression proviso).
Thus, no double taxation is performed. Rather, this creates equality between those taxpayers who receive pension income across the border and those who receive one or more pensions from Austrian employers/sources in Austria. The progression proviso in Austria is mandatory. Therefore, all German pension payments from statutory social security are to be declared in the context of income tax or employee tax assessment in Form L 1i under code 453. This income must not be included in code 359 or in the wage statement (Form L 17). For more information on completing Form L 1i and examples, see page 154.
How is double taxation avoided by application of the exemption method (progression proviso)?
Incomes from abroad from employment or foreign pension remunerations are tax-exempt under the progression proviso, if this is regulated by a double tax convention between Austria and the respective source country. The foreign income itself is not taxed upon application of the exemption method in Austria. As Austria has the right to tax the worldwide income of persons with unlimited tax liability, foreign income must be taken into account when determining the tax rate to be applied to income that is taxable in Austria. Since foreign income is not taxed in Austria, it is not possible to credit foreign tax. Enter this income, which must be taken into account when determining the tax rate to apply the progression proviso, under code 453 in Form L 1i and, in case of pensions, enter it again under code 791. Social security contributions must be deducted from the income to be entered under code 453. The amount of the social security contributions taken into account must be entered under code 184. In any case, you must tick the box under point 4.2 in Form L 1i to indicate whether these social security contributions can be deducted abroad to reduce tax. The "yes" box must be ticked if, for example, you are subject to unlimited tax liability in Germany or could opt for unlimited tax liability in Germany. In these cases, the social security contributions can also be taken into account abroad for tax-reducing purposes.
Any other income-related expenses that are related to German pension income must also be deducted from code 453 in Form L 1i and additionally entered under code 493.
How is double taxation avoided by application of the credit method?
If the double tax convention between Austria and the respective source country stipulates that foreign income taxed abroad is also taxed in Austria, then Austria, as the country of residence, will credit the foreign tax that corresponds to the Austrian tax (maximum credit amount). If the double tax convention requires the credit method to be applied and you have to complete Form L 17, please enter the foreign tax withheld in the source country under code 358. If you record income (excluding extra payments) under code 359 in Form L 1i, also complete code 377. The amount of social security contributions that were taken into account when determining the income for code 359 must be entered under code 183 in Form L 1i. If your employer submitted a pay slip (pay slip type 24), complete the fields in point 2.3 of Form L 1i.
Please note that only the withholding tax legitimately deducted for this income under the double tax convention can be credited. If a higher amount than stipulated in the double tax convention was withheld, you must apply for a refund of the excess tax in the respective source country. It is not possible to credit the excess amount.
Examples of income from abroad
To aid comprehension, here is an example of the full taxation of foreign income in Austria, examples to explain the terms "exemption with progression proviso" and "taxation with crediting" as well as an example of teleworking.
Example: Full taxation right in Austria
A resident of Austria receives pension income from Austria and an additional income in the form of a company pension from Germany. Under the double tax convention, Austria has the right to tax the German company pension. Therefore, both the income from the Austrian pension and the German company pension are fully taxed in Austria. If the German company pension is paid out only twelve times per calendar year (thus excluding bonuses), to simplify matters, the German pension income can be entered in Form L 1i under code 359. To ensure that the tax deductions are applied in the correct amount, it must also be indicated if code 359 contains only pension benefits. The amount of social security contributions that were deducted when determining the income must be entered under code 183 in Form L 1i. Form L 17 should only be completed if a foreign pension with extra payments was received. In this case, in addition to the necessary information in Form L 1i, Form L 17 must also be submitted. No entries must be made under code 359. Tax paid in Germany in error under the double tax convention cannot be credited (see page 147).
Example: Exemption with progression proviso in Austria (exemption method)
A resident of Austria receives pension income from Austria and an additional income in the form of a social security pension from Germany. This income from the German social security pension will be taxed only in Germany according to the double tax convention. In Austria, this income is tax-exempt under the progression proviso. The German income (gross revenue minus income-related expenses) from the social security pension must therefore be entered in Form L 1i under code 453 and also under code 791. The amount of the social security contributions taken into account must be entered under code 184. You must tick the checkbox under point 4.2 to indicate whether these contributions could have been deducted for tax purposes abroad or not. One of the boxes must be ticked. The "yes" box must be ticked if, for example, you are subject to unlimited tax liability in Germany or could opt for unlimited tax liability. The "no" box must be ticked if, for instance, due to limited tax liability in another EU Member State, the statutory social security contributions cannot be deducted for tax-reducing purposes there. Any other income-related expenses (excluding code 184) must be entered under code 493.
These incomes may be included neither under code 359 nor in Form L 17. Tax paid abroad cannot be credited. The foreign income is not taxed upon application of the exemption method in Austria.
Example: How do I correctly complete the checkbox for code 184 in Form L 1i?
For the social security contributions recorded under code 184 in Form L 1i, you are required to indicate whether the social security contributions entered under code 184 can be considered for tax-reducing purposes abroad (one of the checkboxes must be ticked). Whether you could be treated as a person with unlimited tax liability in Germany can be determined from the reason provided in your German income tax assessment.
- Tick Yes if your application in Germany was approved.
- Tick No if your application in Germany was not approved, and you were assessed as a person with limited tax liability.
Note
Statutory social security contributions are generally to be deducted when calculating the related income. However, in cases where limited tax liability in another EU member state prevents these statutory social security contributions from being deducted there, they may be deducted from Austrian income.
If your social security contributions were not deducted abroad to reduce tax, you should tick "no" in the box under code 184 under point 4.2 in Form L 1i 2025. You are required to tick the appropriate box.
Example: Taxation with crediting in Austria (credit method)
A resident of Austria derives income from employment (active income) as a cross-border worker in Liechtenstein. Liechtenstein, as the country of activity, is permitted by the double tax convention to retain a gross withholding tax of 4% from cross-border workers, which should be offset in Austria under the double tax convention. In addition to the information provided in Form L 1i (point 2.2), Liechtenstein-based income must be reported in Form L 17, and the tax legitimately withheld in Liechtenstein under the double tax convention must be recorded under code 358. It is not possible to credit an amount exceeding this in Austria. The refund of any excess tax withheld must be requested in the respective source country.
Example: teleworking (previously "home office")
A resident of Austria derives income from employment (active income) while also teleworking in Austria on some days. The remuneration must be divided between the country of residence and the country of employment according to the working days spent in each respective country. Working days spent teleworking in Austria are subject to taxation in Austria (code 359 in Form L 1i or L 17). Working days spent in Hungary are subject to taxation in Hungary, with Austria exempting them under a progression proviso (code 453 in Form L 1i). The number of teleworking days must be reported in Form L 17.
Did you have any income that was taxed abroad, and is relief granted by the foreign tax authority?
In the event that your income is also taxable in Austria and you have received or applied for relief from foreign tax by the foreign tax authority, please enter this under code 775.
What is an activity within the meaning of section 99(1) Austrian Income Tax Act 1988 (EStG, Einkommensteuergesetz)?
An activity within the meaning of section 99(1)(1) Austrian Income Tax Act 1988 (EStG, Einkommensteuergesetz) is present if you do not have a place of residence or regular domicile in Austria (limited liability to pay taxes) and were active under an employment contract as a writer, lecturer, artist, architect, athlete, performer or contributor in art performances. The employer must withhold wage tax totalling 20% or 25%, respectively. Thus, the employee with limited liability to pay taxes has fulfilled his/her liability to pay tax in Austria (see page 8). A voluntary assessment of all income from employment is possible upon application (point 5.1 in Form L 1i).
How do you apply for assessment with limited tax liability?
If you are applying for assessment with limited tax liability, you are required to submit both Form L 1 and Form L 1i, with points 1 and 5 completed. The assessment upon application will only be processed by the tax office if you have ticked the corresponding box 5.1 or 5.2.
How do you apply for the option for unlimited tax liability?
If you wish to also apply for the option for unlimited tax liability (section 1(4) Austrian Income Tax Act 1988) during the assessment, you must fully complete points 1 and 6 in Form L 1i.
Who can apply for unlimited tax liability?
If you are subject to limited liability to pay taxes in 2025, because you had neither a place of residence nor your regular domicile in Austria, you can apply for unlimited tax liability in Austria on the basis that you are a citizen of an EU Member State or an EEA State or of a state with which Austria has double tax conventions with non-discrimination clauses. This applies only if at least 90% of your income in the calendar year is subject to Austrian income tax, or the income not subject to Austrian income tax amounts to no more than €13,308. This must be proven by a corresponding certification of your country of residence (Form E 9).
Why is updating your personal data important?
You are required to inform the tax office of your current residential address. If you fail to notify the tax office of your current address but are aware of an ongoing procedure with the tax office, service may be carried out by deposit in accordance with the Service of Documents Act. If you are unaware of the ongoing procedure, service may be effected by public notice under the Service of Documents Act (e.g. in the case of estimates following mandatory tax assessments).
When can you file an application for refund with the Tax Authority for Large Traders?
An application for refund of wage tax withheld in Austria pursuant to a double tax convention under section 240 Austrian Federal Tax Code must be submitted to the Tax Authority for Large Traders.
The table below covers standard cases related to income from employment from neighbouring countries. Given that there are numerous exceptions and restrictions depending on the double tax convention (e.g. for teleworking days), it will often be essential that you consult the specific double tax convention or a competent authority (e.g. the tax office) to ensure that your tax is recorded correctly.
Income from neighbouring countries — active income
| Income from | Tax treatment of income in/from | Domicile no more than 183 days, no local employer or permanent DTC establishment | Domicile more than 183 days, or local employer or permanent DTC establishment |
|---|---|---|---|
| Germany | Abroad | Exemption | Taxation |
| Germany | Austria | Full taxation | Exemption with progression proviso |
| Liechtenstein | Abroad | Exemption | Taxation |
| Liechtenstein | Austria | Full taxation | Taxation with crediting |
| Switzerland | Abroad | Exemption | Taxation |
| Switzerland | Austria | Full taxation | Taxation with crediting |
| Italy | Abroad | Exemption | Taxation |
| Italy | Austria | Full taxation | Taxation with crediting |
| Slovenia | Abroad | Exemption | Taxation |
| Slovenia | Austria | Full taxation | Exemption with progression proviso |
| Hungary | Abroad | Exemption | Taxation |
| Hungary | Austria | Full taxation | Exemption with progression proviso |
| Slovakia | Abroad | Exemption | Taxation |
| Slovakia | Austria | Full taxation | Exemption with progression proviso |
| Czech Republic | Abroad | Exemption | Taxation |
| Czech Republic | Austria | Full taxation | Exemption with progression proviso |
Income from neighbouring countries — pensions
| Income from | Tax treatment of income in/from | Cross-border workers | Social security pension | Company pension | Public pension |
|---|---|---|---|---|---|
| Germany | Abroad | Exemption | Taxation | Exemption | Taxation |
| Germany | Austria | Full taxation | Exemption with progression proviso | Full taxation | Exemption with progression proviso |
| Liechtenstein | Abroad | Withholding tax 4% | Exemption | Exemption | Taxation |
| Liechtenstein | Austria | Taxation with crediting | Full taxation | Full taxation | Exemption with progression proviso |
| Switzerland | Abroad | — | Exemption | Exemption | Taxation |
| Switzerland | Austria | — | Full taxation | Full taxation | Exemption with progression proviso |
| Italy | Abroad | Exemption | Exemption | Exemption | Taxation |
| Italy | Austria | Full taxation | Full taxation | Full taxation | Exemption with progression proviso |
| Slovenia | Abroad | — | Exemption | Exemption | Taxation |
| Slovenia | Austria | — | Full taxation | Full taxation | Exemption with progression proviso |
| Hungary | Abroad | — | Exemption | Exemption | Taxation |
| Hungary | Austria | — | Full taxation | Full taxation | Exemption with progression proviso |
| Slovakia | Abroad | — | Exemption | Exemption | Taxation |
| Slovakia | Austria | — | Full taxation | Full taxation | Exemption with progression proviso |
| Czech Republic | Abroad | — | Exemption | Exemption | Taxation |
| Czech Republic | Austria | — | Full taxation | Full taxation | Exemption with progression proviso |