In our FAQ section, we answer frequently asked questions about global mobility – compact, clear and practical. This provides you with quick clarity and enables you to avoid risks at an early stage.
To avoid double taxation when working across borders, the provisions of the double taxation agreement (DTA) apply. These agreements determine which country has the right to tax certain income under which circumstances. Depending on the agreement, either the credit method or the exemption method is applied. Austria has concluded double taxation agreements with over 90 countries.
According to EU Regulation 883/2004 on the coordination of social security systems, you are generally only required to pay social security contributions in one country. Which country is responsible depends on the type and scope of your work (self-employed or employed, substantial or insignificant), your place of residence, and the location of your main activity.
A shadow payroll is a parallel payroll run in the host country. It ensures that taxes and social security contributions are correctly calculated, documented, and paid in the host country, even though salary payments continue to be made in the home country.
The Red-White-Red Card is a special residence permit for qualified workers from third countries (non-EU countries). It allows you to live and work in Austria. There are different categories of this card depending on your qualifications.
The so‑called hypotax is a fictional tax amount that is deducted from the salary as if you were still subject to taxation in your home country. This calculation forms part of the so‑called tax equalization process, which ensures that the assignment does not result in any tax advantages or disadvantages. The aim is to ensure that, as a result of the foreign assignment, you pay neither more nor less tax than you would in your home country.
“Tax equalized” means that your employer ensures that you do not experience any tax advantages or disadvantages as a result of your assignment abroad. This means that you only pay as much income tax as you would pay in your home country, regardless of the actual tax burden in the host country. Any additional costs are covered by your employer.
The ZKO notification (Central Coordination Office of the Federal Ministry of Finance – Zentrale Koordinationsstelle des Bundesministeriums für Finanzen) is mandatory in Austria if employees are posted or assigned to work in Austria by a company based in the EU/EEA or Switzerland. The purpose of this notification is to ensure compliance with Austrian wage and working conditions and to prevent illegal employment. This gives the authorities an overview of foreign workers in Austria and enables them to carry out checks to ensure fair working conditions and compliance with social standards.
Where am I considered as tax resident? The question of tax residency is the decisive factor of taxation. It determines both national and international taxing rights and thus defines in which country an individual must pay tax on their worldwide income.
The pandemic has turned teleworking from a necessity into a permanent part of the labor market, valued by both employees and employers.The white paper deals with the regulations during the pandemic and also the current regulations after the pandemic for teleworking. It allows you to discover similarities and differences in the national regulations.
Many companies underestimate the importance of the Wage and Social Dumping Prevention Act (LSD-BG) in Austria and the associated penalties. Even though it is not a new regulation, there are still considerable misunderstandings about the importance of appointing a responsible officer.
