This Changes for Taxpayers in 2025

As part of the automatic inflation adjustment, the first four tariff limits will be adjusted on the first of January. As a result, the marginal tax rate for the first 13,308 euros is zero percent, for income parts above that up to 21,617 euros 20 percent, up to 35,836 then 30 and up to 69,166 euros 40 percent. Up to 103,072 euros, the marginal tax rate is 48, above that 50 percent.

Deductible amounts will be adjusted to the inflation rate in 2025

So far, the exemption of the "other benefits" (especially holiday and Christmas money) is not part of the compensation for the cold progression. As in 2024, there will also be a corresponding adjustment in 2025. The deductible amounts, including for single earners, will also be adjusted to the inflation rate. From July, single parents with an annual income of up to 25,725 euros for children up to the age of 18 will receive an additional child allowance in the form of a paragraph amount. The amount of 60 euros and the maximum income amount are to be adjusted annually for inflation from 2026.

More Money for Business Trips and Mileage Allowance

From the beginning of the year, the mileage allowance will be increased to 50 cents per kilometer, and a contribution of 15 cents can be claimed for accompanying persons. In addition, the current upper limit for claiming mileage allowance for bicycles is to be doubled from 1,500 kilometers to 3,000 kilometers per year and the lower limit for pedestrians is to be halved to one kilometer.

For company apartments, the completely non-cash living space will be increased to 35 square meters, and communal rooms will no longer be fully allocated to each individual resident as before, but proportionally. The daily and overnight allowances will also be increased: daily allowances for domestic business trips can then be up to 30 euros (previously 26.40 euros), the overnight allowance will be increased from 15 to 17 euros.

Increase of the Small Business Limit to 55,000 Euros

Small business owners have another reason to rejoice in addition to the increase in the limit to 55,000 euros: From now on, they always have the option of simplified invoicing, regardless of the amount shown on the invoice (previously this was only possible for invoices up to 400 euros). The small business exemption can also be applied by entrepreneurs who do not operate their business in Austria, but in another EU member state. New for employees is the "Telework Act", which replaces the home office and makes work - if agreed with the employer - location-independent, for example in a coffee house.

Appointments at the Tax Office via Video or Live Chat

There are also changes in financial administration. For security reasons, the login to FinanzOnline will be converted to a 2-factor authentication. This will become mandatory by autumn 2025 at the latest. The capacities for video appointments at the tax office are to be expanded. In addition, the possibility of obtaining information via live chat or by telephone is to be promoted.

A regulation has been expanded according to which a withholding tax of 10 percent is retained for payments made during line installations (usually to farmers). In the future, payments made in connection with flood protection measures will also be recorded. An entrepreneur who wants to transfer his business to a relative can apply for support for the business transfer from the first of January.

Subsidies to be Reviewed and Published from 2025

To make the background to the budget more understandable, an "open e-learning" will start in the 2nd quarter. On the homepage of the Ministry of Finance, the most important economic indicators relevant to the budget, both nationally and in international comparison, will also be presented in the first quarter.

A subsidy task force will also start in 2025, which will look for possible duplications in the subsidy structure. By developing suitable impact indicators for reporting to the transparency database across federal and state levels, transparency is to be increased and the data situation for the impact of subsidies improved. In Vienna, a pilot project is starting with the reduction of the overall budget risk in the climate area. As part of the Freedom of Information Act, a proactive publication of all subsidies to companies from 1,500 euros must take place from September.

(APA/Red)

This article has been automatically translated, read the original article here.