CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Austria Mulls Reform Of Commuter Tax Allowance

Austria Mulls Reform Of Commuter Tax Allowance

by Ulrika Lomas, Tax-News.com, Brussels

26 November 2012


Austria's ruling Social Democrats (SPA) have recently welcomed acknowledgement from coalition partner the Austrian People's Party (A–VP) of the need to reform the country's commuter tax allowance.

According to the SPA, there is an urgent need to reform the current commuter tax allowance system, to ensure that the provision is fairer both for part-time workers and for low-income workers in Austria.

The SPA insists that the existing distance-based commuter tax allowance should be replaced by a tax deduction. The party argues that according a tax allowance reduces the income tax base, benefiting the country's top earners subject to a high tax rate. In contrast, the SPA underscores that a tax deduction would reduce the actual tax burden on workers.

The SPA highlights the fact that the idea of introducing an "ecological component" is also currently being considered.

Austria's Financial State Secretary Andreas Schieder (SPA) welcomed the key points raised by the AVP recently and the AVP's recognition of the need to reform the current system. Schieder insisted that this consensus will pave the way for "positive negotiations."

In Austria, under certain circumstances, individuals may be entitled to major or minor commuter tax allowances. The allowance reduces the income tax base and is then used to recalculate the tax owed.

TAGS: individuals | tax | Austria | tax breaks | individual income tax

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »