Holiday work placements and taxation
If the holiday work placement trainee is employed, the following applies: If the employment relationship is less than one year and if the payment is above the marginal employment threshold, an employee tax assessment (also known colloquially as tax equalisation or annual equalisation) must be performed.
These rules apply to all EU citizens in Austria.
Advice
For holiday work placement trainees the advantage of employee assessment without application is that they do not need to provide a tax declaration. Excess paid tax will be calculated by the Treasury and transferred.
If the holiday work placement trainee is working based on a free service contract or based on work contracts, the following applies: From an annual income of 13,308 Euro and up (for incomes based on work contracts and free service contracts only) or 14,517 Euro if the amount also includes income taxable income, an income tax declaration (USP) must be provided.
Persons employed in Austria or in receipt of income in Austria, but who have no domicile or usual residence in Austria – regardless of their nationality – are subject to restricted tax liability.
Further links
Explanatory video: Application-free employee tax assessment (BMF)German text
