Austria's Federal Council has approved the Budget Measure Act 2026, introducing a tax-free employee bonus, revised income tax and VAT rules, stronger anti-fraud measures and administrative changes. The legislation will enter into force after publication in the Official Gazette.
Austria’s Federal Council (Bundesrat) approved the Budget Measure Act 2026 on 25 June 2026, adopting a package of amendments to various tax laws aimed at promoting tax fairness, combating tax fraud, reducing the tax burden on workers and simplifying administrative procedures.
Income tax changes
The Act introduces a tax-free Mitarbeiterprämie 2026 (Employee Bonus) of up toEUR 500 per employee for payments made between July and December 2026. The bonus must be granted under specified wage-forming regulations, such as collective agreements, and must represent an additional payment not previously provided.
Where an employee also receives a profit-sharing bonus under § 3 Abs. 1 Z 35, the combined tax-exempt amount for both payments cannot exceed EUR 3,000 per year.
The legislation also sets the monthly tax-free limit for dirt, hardship and danger allowances, together with Sunday, holiday and night work supplements, at EUR 400 for wage payment periods ending after 31 December 2025.
New reporting obligations are introduced for deferred exit taxation. Taxpayers with deferred tax liabilities arising from the relocation of assets or derivatives must submit annual written confirmation through FinanzOnline that no taxable event has occurred where the related income exceeds EUR 100,000 in a calendar year. A transitional rule requires taxpayers with deferred tax debts exceeding EUR 100,000 established after 2005 and not yet fully assessed to submit the required confirmation by 31 December 2026.
VAT and administrative measures
From 1 July 2026, buyers will no longer be required to submit a separate VAT registration where a professional representative calculates and pays the tax under the NoVAG (Standard Consumption Tax Act).
The Act also introduces new administrative fees for residence cards issued under the Asylum Act 2005. In addition, reimbursement for employee travel costs will be linked to the actual cost of a nationwide annual public transport pass (Klimaticket), replacing the previous fixed monetary limit.
Anti-fraud and enforcement
To strengthen tax enforcement, the Office for Combating Fraud will gain access to the account register to identify suspected shell companies, subject to approval by the Federal Tax Court. Authorities investigating intentional financial offences will also receive broader powers to obtain information from telecommunications and digital service providers.
Price marking rules
The legislation amends the Price Marking Act by allowing tourism levies to be displayed separately or included in the gross price. It also increases penalties for breaches of price marking requirements, with repeat offences carrying fines of up to EUR 15,000.
The Budget Measure Act 2026 will enter into force after its publication in the Official Gazette.
