Training tax allowance
- Name of the instrument - Local language
- Bildungsfreibetrag
- Name of the instrument - English translation
- Training tax allowance
- Scheme ID
- 2
- Country
- Austria
- Reporting year
- 2015
- Type of instrument
- Tax incentive for companies
- Type of entry
- Single instrument
- Short description
The training tax allowance (granted by Federal tax law) allowed for deduction of up to 120% of external training costs from taxable income. With regards to internal training, tax allowance was available under specific conditions.
Only companies with profits could benefit from the scheme. Companies with no profits could use tax credit. The tax credit was also alternatively available to those companies for which this scheme was more favourable than tax allowance (NB: for majority of companies, the tax credit was more favourable).
The training tax allowance scheme was terminated in the end of 2015 for a perceived lack of effectiveness in increasing companies' training activities, as part of a tax reform package.- Short description of the related instruments
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- Level of operation
- National
- Name of a part of the country
- nap
- Name of the region (for regional instruments)
- nap
- Name of the sector (for sectoral instruments)
- nap
- Relevance
- Key scheme
- Legal basis
§ 4 Abs 4 Z 8 + 10 EStG Einkommensteuer-Richtlinien 2000, Randziffern 1352 ff und 8210 ff
- Objective(s) and target(s)
To support training measures for employees financed by the employer'
- Year of implementation
- 2000
- Year of latest amendment
- 2002
- Year of termination
- 2015
- Operation/management
Locally responsible tax collection office (under the authority of the Federal Ministry of Finance).
- Eligible group(s)
Companies
- Group(s) with preferential treatment
None
- Education and training eligible
External and internal training of employees in the company´s interest.
- Source of financing and collection mechanism
State (loss of tax revenue)
company- Financing formula and allocation mechanisms
Maximum amount of deduction:
- for external training: no limit
- for internal training: EUR 400 per day (20% of defined maximum amount of training expenditure of EUR 2 000 per day).Maximum share of training expenditure that may be deducted: 100% + (additional, virtual) 20% training allowance.
- Eligible costs
Fees and other costs related to education and training (materials, meals)
- Frequency of the use
Each year
- Volumes of funding
According to the latest published estimates, public investment (foregone tax revenues) resulting from tax allowance added up to EUR 7 000 000.
- Beneficiaries/take up
In 2009, around 5 800 enterprises used the scheme.
- Organisation responsible for monitoring/evaluation
Locally responsible tax collection office (under the authority of the Federal Ministry of Finance).
- Monitoring/evaluation reports available
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- Most relevant webpage - in English
http://www.advantageaustria.org/international/zentral/business-guide-oe…
- Most relevant webpage - local language
https://www.wko.at/Content.Node/Service/Steuern/Einkommensteuer-und-Koe…
- Recent changes
Discontinued from the end of 2015. The scheme was abolished (as a part of a tax reform package) for a perceived lack of effectiveness in increasing companies's training activities.
- Sources
https://www.usp.gv.at/Portal.Node/usp/public/content/steuern_und_finanz…
Bundesrepublik Österreich (2015) Gesamte Rechtsvorschrift für Einkommensteuergesetz 1988, Fassung vom 16.04.2015. Wien. Online: https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gese…
Bundesministerium für Finanzen (2006) 1. Wartungserlass 2006 betreffend EStR 2000. Wien. Online: https://findok.bmf.gv.at/findok?execution=e1s1&dokumentId=5eef3e5b-bfba…
Bundesministerium für Finanzen (2007) EStR 2000 - Wartungserlass 2007. Wien. Online: https://findok.bmf.gv.at/findok?execution=e2s1&dokumentId=30615e35-cc21…
- Short description
- Short description of the related instruments
- Level of operation
- Name of a part of the country
- Name of the region (for regional instruments)
- Name of the sector (for sectoral instruments)
- Relevance
- Legal basis
- Objective(s) and target(s)
- Year of implementation
- Year of latest amendment
- Year of termination
- Operation/management
- Eligible group(s)
- Group(s) with preferential treatment
- Education and training eligible
- Source of financing and collection mechanism
- Financing formula and allocation mechanisms
- Eligible costs
- Frequency of the use
- Volumes of funding
- Beneficiaries/take up
- Organisation responsible for monitoring/evaluation
- Monitoring/evaluation reports available
- Most relevant webpage - in English
- Most relevant webpage - local language
- Recent changes
- Sources