Austria MOF Clarifies Individual Income Tax Exemption for Hardship Allowances

The Austrian Ministry of Finance Sept. 15 posted online Federal Finance Court Decision No. RV/6100493/2018, clarifying the income tax exemption for hardship allowances. The taxpayer, a biomedical analyst, claimed an exemption for a hardship allowance received from her employer in 2015. After an on-site inspection and subsequent discussions with the taxpayer’s employer, the Tax Office determined that the allowance was taxable. The taxpayer argued that the allowance should be tax-free under Section 68(1) of the Income Tax Act 1988. Upon appeal, the Federal Finance Court upheld the Tax Office’s decision and stated that: 1) the taxpayer’s work mainly involved routine ...