Tax allowable professional expenses

Name of the instrument - Local language: Werbungskosten
Name of the instrument - English translation: Tax allowable professional expenses
Country: Austria
Type of instrument: Tax incentive for individuals
Type of entry: Single instrument

Short description: Adults can deduct costs related to their continuing vocational training for their current or future occupation from the base of their individual income tax. The public co-funding – in the form of foregone tax revenues - equals to the eligible costs multiplied by the marginal tax rate (between 36.5 and 50% in 2014). No ceiling is introduced for the amount/share of training costs to be deducted.
Individuals with non-taxable income (below EUR 11 000) cannot profit from this scheme. No comprehensive statistical information on beneficiaries and volumes of funding is available.
Short description of the related instruments: nap

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: § 16 Abs 1 Z 10 EStG - (Einkommenssteuergesetz; act on income tax)
Year of implementation: 1988
Year of latest amendment: 2003
Operation/Management: Locally responsible tax collection office (under the authority of the Federal Ministry of Finance).
Eligible group(s): Individuals paying income tax (that means: those with low income - below EUR 11 000 net - do not benefit from the scheme).
Group(s) with preferential treatment: None
Education and training eligible: Training relevant for the current profession or comprehensive retraining.
Source of financing and collection mechanism: State (loss of tax revenue)
individual
Financing formula and allocation mechanisms: Allocation: reduction of a tax base.
Eligible costs: Fees and other costs related to education and training (costs for teaching materials and professional literature, travel and accommodation costs, costs of a computer).
Frequency of the use: Each year
Volumes of funding: na
Beneficiaries/take up: The volumes of tax refunds are estimated at more than EUR 50 000 000.
Organisation responsible for monitoring/evaluation: Federal Ministry of Finance.
Monitoring/evaluation reports available: na
Most relevant webpage - in English: https://english.bmf.gv.at/services/publications/Income_tax_2009_2.pdf?4…
Most relevant webpage - local language: https://www.bmf.gv.at/steuern/arbeitnehmer-pensionisten/arbeitnehmerver…
Sources: https://www.bmf.gv.at/steuern/arbeitnehmer-pensionisten/arbeitnehmerver…; 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…