Typical tax computation for 2021, based on the projected law and tax rates in effect as of 1 January 2021
- Resident husband and wife
- Two dependent children
- Husband is sole earner:
- Employment in Austria (Austrian employer).
- Austrian social security.
- Employment income paid in 14 instalments.
- Interest income from bank deposits (EUR 11,250)
- Dividends from abroad (DTT country) (EUR 7,030 comparable to Austrian dividends)
- Life insurance premiums of EUR 7,300 per year (contract was closed before 1 January 2016).
|Less: Tax-favoured portion (13th and 14th salaries) ((77,000 / 14) x 2)||(11,100.00)|
|Less: Social security contributions||(12,067.92)|
|Less: Standard allowance: Business expenses||(132.00)|
|Less: Non-business expenses relief: Insurance premiums (max) *||(0.00)||23,299.92|
|Less: Personal allowances: Family bonus plus||(3,000.00)|
|Less: Personal allowances: Sole earner||(669.00)|
|Less: Personal allowances: Transportation credit||(400.00)||(4,069.00)|
|Income tax on 13th and 14th salaries ((77,000 / 14) x 2)||11,100.00|
|Social security contributions||(1,900.32)|
|For 13th and 14th salaries||(620.00)||8,579.68|
|Assessment basis (6% of 8,541.31)||514.78|
|Add: 25% special tax on interest and 27.5% on dividends||4,745.75|
|Income tax liability||16,969.56|
|Foreign tax credit for WHT on dividends (assume 10% of 7,030)||(703.00)|
|Total income tax payable||16,266.56|
* Life Insurance premiums are not deductible anymore after the year 2020, even if the contract was closed prior to 2016.