A key element to Austria's tax law reform which comes into
effect on 1 January 2016, is the change to progressive income tax,
which is expected to lead to an estimated €5bn in overall tax
relief.
Most Austrian taxpayers are set to benefit from the reform of
the tax tariff amendments, employees as well as individual
entrepreneurs. More need for action derives from the set of
measures to finance this relief. These measures affect all
entrepreneurs, HR and payroll specialists, shareholders, persons
planning to sell their real estate and companies with real estate
assets.
The tax relief will be financed by a set of government measures
targeting unreported earnings, and there will also be an increase
of two sorts of flat tax, an increase of the land transfer tax and
an increase of VAT rates. Furthermore, a wide variety of benefits
in kind will be extinguished and replaced by a general ruling on
how to deal with employee discounts.
