Corporate Tax

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Corporate tax law

To arrive at a fair tax burden for companies by allowing them to deduct training costs (as the costs to run business) from their tax base (i.e. net profits).

The Federal Ministry of Finance is responsible for the overall management and monitoring/evaluation of the instrument. Tax authorities are responsible for day-to-day operation.

All companies

The instrument supports apprenticeship and other types of education and training. It supports any form of in-company-training or training that is financed by the company.

State (loss of tax revenue)

The maximum amount/share of eligible expenditure that a company may deduct is not specified (no limit).

Tax incentive covers all expenses companies incur in relation to doing business. In relation to apprenticeship, the tax incentive covers apprentice remuneration, social insurance contributions, training and learning materials, costs of trainers, training equipment. If companies pay levies into training funds, these contributions are also tax deductible.

In 2016, the public funding involved (loss of State's revenue) amounted to EUR 1,230,000,000.

In 2015, 427,496 companies were employing apprentices. The figure does not necessarily correspond to the number of companies taxed according to corporate tax law.

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