The Austrian Government intends to go ahead with proposals to simplify the income tax system by the second half of 2014, the Finance Minister has announced. He commented that payroll taxes in Austria are too complex and place a compliance burden on taxpayers. .
The Austrian ruling parties are committed to reform the income tax law by the provisions of their governing agreement. They take the view that the large number of tax concessions and exemptions given to taxpayers has made the process of computing payroll taxes too arduous and costly for all taxpayers and especially for smaller enterprises. .
The Austrian Government wants to bring the income tax system and the social security law closer into line with each other and has undertaken to abolish many of the environmental and social tax reliefs. The government has also agreed to increase the tax-free allowance for employee share participation to EUR3,000.
