Supreme Administrative Court on annual sixths optimisation of annual premiums

As is known, Other references (plus 13th and 14th month's salary) after deduction of social insurance contributions 6% is taxed on a preferential basis. This is only true to the extent that these special payments within a calendar year one Sixth the total gross emoluments not to exceed (so-called "Annual instalment"Moreover, these payments are below the Tax-free allowance of €620 completely tax-free and also exceptionally tax-free if the annual sixth Duty-free allowance from 2,100 € does not exceed. That Part of other references, which exceeds one-sixth of the annual amount, will be subject taxed at the normal rate and is therefore not favoured.

Other allowances only precede when they are both through the Legal title, from which the employee can derive their entitlement, as well as by the Actual payout clearly from the current earnings differentiate. Commissions or bonuses paid out once a year are in any case not subject to the preferential tax rate of 6% and do not affect the amount of the annual sixth. However, they do increase Commissions under previous practice, the annual sixth, provided that it paid with the fixed salary werden und führen so zu einer Tax adjustment, as the 13th and 14th instalments of the special payment were also taxed at the preferential rate.

In a Supreme Administrative Court in the present case (GZ Ro 2017/13/0005 of 25 July 2018), the Variable bonuses in the period January to June under the heading "running premium" paid out. It was questionable whether these ongoing premiums would increase the annual sixth, even if they Not open everything Payment periods for remuneration over a year are omitted. Largely following previous case law, other remuneration only exists if the legal title and payment method differ significantly from the regular remuneration. A purely computational breakdown in ongoing and other payments Not possible. Interestingly, the VwGH, in its ruling, refers to the previous administrative view (LStR Rz 1052, Example 3), in which premium payments for the payout period from April to December are included in the calculation of the annual sixth. Specifically, confirmed these Legal perspective Also for a Payout period from six months - clear distinguishability from current remuneration, which is necessary for a different reference, is not given even with a semi-annual payment period. The Premium was created as Annual dividend increase classified. For a Optimisation The Preferential taxation any other references is therefore already at the Agreement The Payout terms Caution required!