Tax-privileged benefits: Let your employees profit from such benefits

Benefits do not only promote your employees’ wellbeing but also the overall company climate. In our P&O Breakfast from 6 May 2025, we have screened allowances exempt from taxation and social security contributions and summarised what employers have to consider. Below a short overview:

Telework

• Up to EUR 3 per telework day and maximum EUR 300 per year are tax-free if the employee worked the entire workday either from home or at another agreed-upon location (e.g. co-working space).
• Registering these days on the payslip is mandatory.

Events, gifts and anniversaries

• Company celebrations and events are tax-free up to EUR 365 per year and employee.
• Material gifts are tax-free up to EUR 186 per year and employee.
• For special (milestone) anniversaries, material gifts of up to EUR 186 are tax-free.
• Allowances for personal occasions such as birthdays or marriages, however, are subject to taxes in their total amount.
• Financial gifts are always subject to taxation.

Public transportation ticket, transportation for own-account, motor vehicles and bicycles

• Public transportation ticket: Public transportation costs are tax-free if the ticket is valid at the place of residence or the place of work. Partial reimbursement of costs is also not subject to taxation.
• Transportation for own account: Transportation of employees between their place of residence and their place of work is also not subject to taxation if the means of transportation used is similar to a public means of transportation.
• E-Carsharing: Up to EUR 200 per year and employee are tax-free for non-business trips with an e-car, e-motorcycle, e-bicycle and e-scooter within carsharing. The allowance may be distributed using vouchers.
• Company bicycle: Tax-free private use of bicycles owned by the employer is possible and is valued as a benefit in kind of zero. We are happy to advice you regarding job bike alternatives.
• Company car: Private use of cars owned by the employer is to be considered a benefit in kind. The amount of the benefit in kind depends on the value of the CO2 emissions.

• *) acquisition date is relevant
• Charging costs for electric vehicles: Without receipt a maximum lump sum of EUR 30 per month is allowed. Moreover, for a private charging station up to EUR 2,000 may be refunded.

Meals and discounts

• Voluntary meals, coffee and fruit at the workplace are tax-free.
• Food vouchers are tax-free up to EUR 8 per working day for meals and up to EUR 2 per working day for groceries.
• Discounts for services and merchandise of the employer are tax-free up to 20%. If discounts above 20% are granted, a tax-exempt amount of EUR 1,000 per year and employee applies. Higher discounts in terms of amount are subject to taxation.

Physical exercise and health

• Using sports facilities owned by the employer or operated together with other employers, is tax-free.
• Allowances for third-party sports facilities are subject to taxes.
• Health-promoting measures are exempt from taxation if they are included in the statutory health insurance plan and performed by qualified providers.
• Vaccinations granted through allowances are also tax-free if they are included in the Austrian vaccination plan (Impfplan Österreich).

Childcare, staff provision funds, education and training

• Childcare: Up to EUR 2,000 per year and child are tax-free refundable directly to qualified institutions, using vouchers, or to the employees.
• Staff provision funds: Up to EUR 300 per year are exempt from taxation for private health, life, casualty or pension insurance.
• Education and training: Tax-free reimbursement of costs is possible if the education or training complies with the company’s interests.

In order to offer attractive and tailored benefits, we recommend checking related labour, tax and social security contribution legislation in advance.

We are happy to advice you in case of questions regarding benefits and to support you during implementation

Autor:innen:

Martina Limbeck

Barbara Mechtler