Sixth of the year

For income tax in Austria, the sixth of the year represents the limit under which other payments (for example, 13th and 14th monthly salary , rewards , bonuses , anniversary bonuses ) are taxed at a reduced rate after deducting an allowance of 620 euros (as of 2018) . The legal basis for the sixth of the year can be found in Section 67 of the Income Tax Act (EStG).

calculation

The sixth of the year is calculated as follows: In a first step, the total of the gross earnings paid so far in the calendar year is divided by the number of calendar months in the past. In a second step, the result of the first step is multiplied by two. If the salaries remain the same, the annual sixth results in two gross monthly salaries. The sixth of the year after deduction of the social security contributions, compulsory contributions to statutory interest groups and housing subsidy contributions, may not exceed EUR 83,333.

Special tax rate

Payments (special payments) that are subject to one sixth of the year are taxed on the basis of a preferential wage tax rate.
Since January 1, 2013, this preferential tax rate has been progressive.
This is currently (as of September 2019) :

The tax on the other emoluments according to § 67 Abs. 1 EStG
Amount of the assessment basis for other remuneration	Marginal tax rate
For the first 620 euros	0%
For the next 24,380 euros	6%
For the next 25,000 euros	27%
For the next 33,333 euros	35.75%
Over € 83,333.00 euros	after this general tax rate

The other remuneration can be found on the annual wage slip under code 220. If the key figure 220 is no more than 2,100 euros, no tax is due.

Previously, a uniform tax rate of 6% applied to the sixth of the year, taking into account the tax exemption of 620 euros.

Taxation of other special payments

If other payments are made beyond the sixth of the year, they will be taxed on the current salary in the respective month at the usual conditions.

example

A person who is employed and earns a gross monthly salary of EUR 3,500.00 also receives special payments for vacation and Christmas bonuses as well as an annual bonus of EUR 3,500.00 each.

Income according to § 15 Abs. 1 EStG :

Total current payments: 3,500 × 15 = 52,500 euros

Special payments according to Section 67 EStG :

Other one-off payments (13th + 14th salary + bonus): 3,500 × 3 = 10,500 euros

Comparison with sixths of the year according to Section 67 (2) EStG :

Current salary: (3,500 × 12) = 42,000 of which 1/6 = 7,000 euros

The other one-off payments are compared with the annual sixth. The smaller contribution will be deducted from the regular payments

10,500 - 7,000 = 3,500 euros (these are to be taxed separately).

Web links

Individual evidence

↑ § 67 Income Tax Act. Retrieved December 5, 2018 .

[1] § 67 Income Tax Act. Retrieved December 5, 2018 .