Dear Clients,
The regulations for working from home have been in place in Austria for a number of years (“Home-Office”). These regulations for Home-Office will be expanded now in order to include the regular performance of work at other locations not belonging to the company ("telework").
The new 'Teleworking Law' (=Telearbeitsgesetz) which will come into force on January 1, 2025 shall extend the possibilities for flexible working and includes regulations on labour law, social security and tax law.
What is telework?
§ 2h sec. 1 of the “Arbeitsvertragsrechtsanpassungsgesetz” (AVRAG), which previously regulated the term "Home-Office", has been revised by the Teleworking Act: Teleworking is when an employee regularly performs work, in particular using the necessary information and communication technology, at home or at another location not belonging to the company.
The Telework Act thus extends the Home-Office to teleworking outside the home. This means that employers and employees can agree to 'work from anywhere', for example in coworking spaces.
Written agreement on telework
As it was previously the case for working from home, telework must also be agreed in writing between the employer and the employee (§ 2h sec. 2 AVRAG). This agreement must also regulate the place where the work is to be performed. Telework cannot be ordered unilaterally by the employer, nor can it be used unilaterally by the employee.
The new legal situation under the Telework Law will also apply to existing Home-Office agreements from January 1, 2025. Existing Home-Office agreements will remain valid, but should be adapted if additional telework locations are planned under the new legal definition of telework.
Teleworking allowance
In the Austrian Income Tax Act (Einkommensteuergesetz), the material scope is extended by reference to the amended provisions of § 2h AVRAG. With the extension of Home-office to teleworking, it is no longer necessary that the employee's professional activity is carried out exclusively at home, as was previously the case. In future, therefore, a telework allowance can be paid on the basis of the term "telework".
The conditions for the non-taxable use of a telework allowance remain unchanged from the previous legal situation. Thus, the lump sum can still be paid up to EUR 3 per exclusive teleworking day and is available for a maximum of 100 days per calendar year.
If the employer voluntarily pays a higher telework allowance, the amount exceeding the maximum amount of EUR 300 will be taxable with the normal income tax rates.
The days of telework and the telework allowance granted must, as before, be recorded by the employer in the payroll account and shown on the payslip.
Ergonomic furniture
As before, the cost of ergonomically suitable furniture can be claimed as an income-related expense, provided that there is no fiscally recognised workroom (=steuerlich anerkanntes Arbeitszimmer) and the furniture has been purchased by the employee for a workstation set up at home. In addition, the employee must have worked at least 26 telework days per calendar year.
Best regards
Manfred Gross
Vienna, October 2024
