The overall competent authority in Austria for tax topics is the Austrian Finance Ministry.
The place of your main residence in Austria will determine which local tax office (Finanzamt) is dealing with your personal tax matters. For commuters residing in the district of Feldkirch the following local tax office is the responsible local tax office:
Employees residing in Austria will be taxed on their worldwide income in Austria. If you take up dependent work in Liechtenstein / Switzerland you have to report this fact to the responsible local tax office in Austria. You will have to pay quarterly income tax instalments which are due on February 15th, May 15th, August 15th and November 15th.
You have to file an annual tax return in Austria. Filing deadline is June 30th, after the end of the tax year. After the commuter has reported the dependent work with the responsible local tax office (special commuter department) you will receive a preliminary tax assessment for the tax year. There is no withholding of Austrian income tax in your Liechtenstein / Swiss payroll.
Who is a commuter? Employees residing in Austria who commute from their Austrian main residence to the place of work in Liechtenstein or Switzerland on a daily basis.
Commuters from Austria will be subject to withholding tax on their Liechtenstein / Swiss employment income. The Liechtenstein employer (Hilti AG) has to deduct a 4% withholding tax via the local payroll. The Swiss employer (HIBAG) will deduct withholding tax based on the withholding tax table of the Canton St. Gallen.
The withholding tax will be paid to the responsible tax office of the employer. Based on the applicable double tax treaty you will receive a tax credit for the withholding taxes levied in Liechtenstein / Switzerland.
The Pay element “Commuter-Special Payment” will be taxed at flat tax rates between 6% and 35.75%, if the special payment is eligible for the “Jahressechstel” rule. All payments that fall under the “Jahressechstel” rule profit from a lower tax rate compared to the standard Austrian income tax rates.
The Liechtenstein employer (Hilti AG, HAG) has to withhold tax on the employment income. The withholding tax rate is based on the salary tax table published by the Liechtenstein tax authorities. Employees living in Austria during the week who have their main residence outside of Austria (e.g. in Germany) are not eligible for the reduced withholding tax rate of 4%.
The Swiss employer (Hilti Befestigungstechnik AG, HIBAG) will levy a reduced withholding tax of 4.5% on employees who have their main residence in Germany and stay in Austria during the week. Employees residing in Germany have to present a tax residence certificate signed by the Germany tax authorities to their Swiss employer (Form Gre-1 a). The employer will file the form Gre-1 a with the tax office in St. Gallen. If you change your German residence you have to file Gre-2.
Employees will receive a tax credit in Germany for the Liechtenstein / Swiss taxes paid. Employees will remain taxable on their worldwide income in their respective country of main residence (center of vital interest).
Austrian sourced income is taxable in Austria. To avoid any ambiguity with regards to the allocation of income between Austria and Germany (or any other country of residence), the Austrian tax authorities should be presented with a tax residence certificate. We recommend that you have the documentation readily available should you be questioned at the border. In some cases the determination of the tax residency may not be straight forward. Therefore, we recommend that you contact a local tax advisor.
The income tax return has to be filed by April 30th (paper form) or by June 30th (electronic filing). Your tax advisor may apply for a filing extension. Any communication from the tax office and the access codes for the electronic Portal (finanzonline.at) will be sent via mail.
Find more information on this subject here.
In accordance with your integration agreement, you are entitled to tax advice.
Every year you have the opportunity, through the Hilti benefit portal, to take advantage of a voucher for a tax consultation with tax consultants commissioned by Hilti. Additional hours will be charged to you directly by the tax consultant.