Austria MOF Clarifies Limitations on Deductibility of Family Bonus Plus

The Austrian Federal Ministry of Finance Aug. 14 posted online Federal Finance Court Decision No. RV/7100913/2025, clarifying the limitations on the deductibility of the Family Bonus Plus under Income Tax Act 1988. The taxpayer, an individual, claimed the full Family Bonus Plus for two children, along with extraordinary expense deductions and other incentives. The Tax Office took the bonus into account in an amount corresponding to the tax calculated based on the average tax rate. On appeal, the Federal Finance Court upheld the assessment, finding that: 1) the bonus was limited to the amount of positive income tax before deductions ...