Austria

From 1 January 2020 onwards based on the current legal provision, every employer is obliged to run a payroll in Austria for employees, who are considered unlimited tax liable in Austria based on Austrian national legislation.

On November 26, 2019 an information was published by the Austrian ministry of finance stating that this new legal provision should be amended soon. It is planned that mandatory wage tax deduction for the employer only exists, if

• The employee physically carries out activities in Austria and
• The taxation rights on the employment income are allocated to Austria according to the applicable double taxation treaty.

A corresponding amendment was also made to the non-binding Austrian wage tax guidelines on December 17, 2019. However, legal certainty can only be achieved by the legal adaptation of the wording.