Austria has opened a public consultation on a draft 2026 tax reform package aimed at improving tax fairness, strengthening anti-fraud measures, easing the tax burden on workers and simplifying administrative procedures across income tax, VAT, financial crime rules and account registry regulations.
Austria’s Ministry of Finance has published a draft bill introducing amendments to various tax laws and has opened a public consultation. The proposal aims to improve tax fairness, combat tax fraud, reduce the tax burden on workers, and simplify administrative procedures.
The draft, titled the Austrian Federal Tax and Financial Law Amendment Act 2026, includes changes across income tax, VAT, financial criminal law, fees, and account registry rules.
Income Tax Act (EStG 1988)
The definition of “actual disposal” of assets is expanded to include the relocation of assets to certain foreign states and breaches of specific reporting obligations. Taxpayers with income exceeding EUR 100,000 from such assets will be required to submit annual reports via FinanzOnline or in writing confirming that no tax-triggering event has occurred.
Monthly tax-free allowances for “dirty, difficult or dangerous” work, as well as night, holiday, and overtime pay, are set at EUR 400.
A tax-free employee bonus (Mitarbeiterprämie) of up to EUR 500 per employee may be granted between July and December 2026. It must be an additional payment not previously granted and is capped at EUR 3,000 when combined with profit-sharing schemes.
Taxpayers with outstanding tax liabilities exceeding EUR 100,000 arising after 2005 must provide proof by 31 December 2026 that no event has occurred which would trigger tax assessment.
Value Added Tax Act (UStG 1994)
From 1 July 2026, simplified filing rules will allow purchasers to omit tax declarations where VAT is calculated and paid by a legal representative.
Financial Crimes Act (FinStrG)
Financial authorities will be allowed to request information from telecommunications and service providers in cases of intentional financial offences. Access to bank information outside the standard registry will require an order from the chair of an adjudicating senate.
Fees Act (GebG 1957)
New fees will apply to residence permits issued under the Asylum Act 2005. The fee will be EUR 39 for individuals under 16 and EUR 91 for those aged 16 and above. These rules apply to applications submitted after 11 June 2026.
Account Registry and Inspection Act (KontRegG)
The account registry, covering current, savings, credit accounts, securities accounts and safe deposit boxes, will continue to support tax enforcement, anti-money laundering, and social fraud prevention.
The Anti-Fraud Office (Amt für Betrugsbekämpfung) will gain access to registry data to identify shell companies where there is reasonable suspicion of fraud.
Most account inspections will require approval from the Federal Tax Court (BFG). A Legal Protection Commissioner will also be granted oversight powers, including access to records and the right to request information from authorities.
The consultation period remains open until 8 May 2026.
