The council of ministers agreed on the cornerstones for the employment bonus which were presented in the governmental work plan a month ago. As a subsidy, enterprises should be able to claim 50% of payroll taxes for each additional employee (full-time-equivalent) from July 1st 2017 for a maximum period of 3 years. The bonus can be claimed for full-time and part-time jobs.
Subject to subsidies are only new created jobs (referring to the time of the claim respective 12 months before the claim) which are not exempted from full social security or municipal tax. However, enterprises which are exempted from municipal tax according to section 8 KommStG (e.g. Healthcare) can also claim for employment bonus. The hired person must be either
- a person which was registered at AMS as jobless or
- is a graduate of an Austrian educational institution (school / university) or
- is already working for an Austrian employer or
- is hired because of a red-white-red card.
One of these prerequisites must be documented by the enterprise at the time of the employee’s registration at the social security agency. The new jobs have to last at least 6 months. Moreover, the created jobs have to be justified to an extent of at least one full-time-equivalent.
Payroll taxes subject to subsidies.
The refund can be claimed on following taxes paid:
- Social security contributions
- Contributions to family burden equalization funds
- Contributions to economic chambers (as addition to the contributions to family burden equalization funds)
- Municipal tax
- Contributions to employee benefit plan
Limitation of subsidies.
If a subsidy on payroll taxes is already granted (e.g. start up subsidy on payroll taxes) the employment bonus is denied. Furthermore, the employment bonus is limited to a total governmental budget position of EUR 2 billion. Employment changes due to intra-Group relocations, reorganizations or similar activities will be excluded from the employment bonus. Companies of the public sector according to ESA are not entitled to claim the subsidy.
Claims will be possible from July 1st 2017. In general, claims have to be made before a new job is created. Each new job has to be reported to the subsidy agency at the beginning of the employment.
The claims will be proceeded by aws (Austria Wirtschaftsservice) and ÖHT (Austrian bank for hotels and tourism). Aws is going to publish the subsidy guidelines as soon as they are agreed between aws and the involved ministries.
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