The recent somewhat difficult information situation regarding the tax law treatment of continued remuneration pursuant to Section 32 of the Epidemics Act can currently be summarized as follows:

– The current portion of the quarantine allowance is subject to income tax as a regular salary. According to the BMF, it is not integrated into the normal calculation of sixths and control sixths, but 1/6 of the current portion may be added to the annual or control sixth (similar to the logic used for vacation pay).

– The special payment part of the quarantine allowance is treated as a normal special payment for income tax purposes, i.e. it is subject to sixths tax (6% tax if there is still room in the increased sixth).

– The current portion and special payment portion of the quarantine fee are exempt from DB, DZ and KommSt.

– There is a normal obligation to pay social insurance and occupational benefits.

A brief critical comment is permitted: In our opinion, the sense of the special wage tax method proposed by the BMF (1/6 addition instead of normal inclusion in the sixth calculation) is rather doubtful, since in many cases at the end of the year the arithmetical result would be the same as with a normal sixth increase anyway (differences could possibly arise, however, e.g. in the case of short-time work in connection with the 15% sixth increase). One could almost get the impression that the tax authorities are following the motto here: Why have a simple solution if it can be complicated?

If you have any questions, you can reach the author by e-mail:

kraft@schloemmer-partner.at

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Source: www.vorlagenportal.at