In Austria, bonuses are subject to the same tax regulations as regular salary payments. Here’s how bonuses are taxed:
Tax Treatment
Progressive Taxation: Bonuses are taxed under the same progressive income tax rates as regular income. The applicable tax rates are:
Up to EUR 12,465: 0%
EUR 12,465 to 20,397: 20%
EUR 20,397 to 34,192: 30%
EUR 34,192 to 66,178: 40%
EUR 66,178 to 99,266: 48%
EUR 99,266 to 1,000,000: 50%
Over EUR 1,000,000: 55%
Special Tax Regime for Non-Recurring Payments: Austrian law includes a special tax regime for special or non-recurring payments, which includes bonuses. These payments, when not exceeding one-sixth of the regular payment, may be taxed at a lower rate. This regime applies to ensure that irregular bonuses are not excessively taxed compared to regular income.
Tax Withholding: Employers are required to withhold income tax on bonuses and remit it to the tax authorities along with regular salary withholding.
For more detailed and updated information, you can refer to the official tax regulation sources: Austrian Federal Law Gazette.