The tax incentive for entrepreneurs and freelancers
Take advantage of the tax benefits provided by the tax-free allowance on business profits.
Entrepreneurs and freelancers can keep part of their profit (starting from 33,000 euros up to 15%) tax-free by investing in eligible assets and/or eligible securities. The basic tax-free allowance is automatically applied for profits up to 33,000 euros. No additional investment required.
Make sure to consult your tax advisor and bank advisor before the end of your financial year.
You can find facts and details in our questions & answers.
Calculate your tax-free allowance on business profits here:
Profit allowance calculator of the Federal Ministry of Finance
Schedule a consultation appointment
If, after consulting with your tax advisor, you decide to invest in eligible securities, your bank advisor will be happy to answer your questions and provide advice on opportunities, risks, and costs of the eligible securities
You will need a fee-based custody account (depot) to record the securities,
If you do not yet have a custody account, you can order one in advance as an existing customer and BusinessNet user before your consultation with your bank advisor here.
- BusinessNet: Please log in to your BusinessNet and go to Form orders › Securities.
To BusinessNet - MobileBanking app: you can open a custody account under › Offers › Investment › Depot eröffnen.
To MobileBanking App - In 24You, you can open a securities account under › Unsere Angebote › Firmenprodukte › Depot eröffnen
To 24You
Questions & answers:
For profits up to 33,000 euros, the basic allowance of 15% is automatically applied. No investments are required.
For profits from 33,000 euros up to a maximum of 583,000 euros, the profit allowance applies with a stepwise reduction of the percentage rate (the higher the profit, the lower the percentage).
The maximum profit allowance since 01.01.2024 is 46,400 euros (for fiscal years beginning before January 1, 2024: 45,950 euros).
This amount must be covered by investments in eligible assets and/or eligible securities.
Quelle: www.usp.gv.at – Profit Allowance
As of 2024:
- Profits up to 33,000 euros: 15%
- The next 145,000 euros: 13%
- The next 175,000 euros: 7%
- The next 230,000 euros: 4.5%
- No profit allowance is available for profits above 583,000 euros (for fiscal years beginning before January 1, 2024: 580,000 euros)
Quelle: www.usp.gv.at – Profit Allowance
- Natural persons who earn profits from a business activity – such as trade, self-employment, agriculture, and forestry.
- In partnerships (such as OG or KG), partners can claim the profit allowance in proportion to their profit share.
The basic allowance also applies when using lump-sum taxation (regardless of the legal basis on lump-sum tastation). However, the investment-based profit allowance cannot be claimed under lump-sum taxation.
- Eligible assets:
Tangible depreciable fixed assets with a useful life of at least four years. This may include buildings, although used assets are excluded.
Quelle: www.usp.gv.at – Profit Allowance - Eligible securities:
Securities as defined in § 14 (7) no. 4 Income Tax Act, provided they are allocated to the business (by inclusion in a register) for at least four years from the date of acquisition.
Quelle: www.usp.gv.at – Profit Allowance
We are happy to advise you on which securities qualify.
- Passenger cars and station wagons (except driving school vehicles and taxis)
- Used assets
- Low-value assets written off immediately
Quelle: www.usp.gv.at – Profit Allowance
Within the tax return: Basic allowance is automatically applied.
Investment-based allowance must be declared and documented (asset register or securities register).
The information provided does not constitute investment advice or an investment recommendation. In particular, it is not an offer or an invitation to buy or sell securities. It serves only as initial information and cannot replace advice tailored to the individual circumstances and knowledge of the investor. Every investment involves risks, including the potential total loss of the invested capital. The value of investments and the amount of returns can fluctuate significantly and cannot be guaranteed. Exchange rate fluctuations may also affect the investment outcome.
Please note that the tax treatment depends on the investor’s personal or business circumstances. The information on tax benefits is based on current legislation, which may be subject to future changes. No guarantee can be given that the current situation will remain unchanged. For questions regarding tax treatment, please contact your tax advisor.
