The Austrian budget for 2014 aims to decrease the labor costs incurred by business and has also proposed the abolition of the capital transfer tax. Wage costs will be lowered by means of a decrease of 0.1 percent in the accident insurance contributions made by employers in 2014, and by a 0.1 percent decrease in the payments made by employers to the insolvency and remuneration fund in 2015.
The capital transfer tax will be abolished from 1 January 2016. This move is intended to simplify the tax system and decrease the compliance costs of business. Further simplifications to the system are planned by means of reducing the amount of tax relief offered. When the public finances allow further measures there will be a reduction in the entry rate of income tax.
