CONVINUS Global Mobility
CONVINUS Global Mobility Insights - Frühling / Spring 2025Remuneration that cannot be directly allocated must then be dividedaccording to the number of working days, whereby this also applies to theassociated income-related expenses.The following example is intended to illustrate the above:Mrs Mayer, an employee of an Austrian company, is temporarily posted to work inGermany for 3 years. She does not give up her Austrian residence. She establishes aresidence in Germany to carry out her work in Germany and regularly returns toher family in Austria at weekends. In year 1, Mrs Mayer works a total of 220 workingdays, 185 of which are spent in Germany, 15 in Austria and 20 in France. In year 2,she is paid a bonus for year 1. In year 2, she works a total of 225 working days, ofwhich 190 are worked in Germany, 10 in Austria and 25 in France.Solution:Mrs Mayer is resident in Austria for tax purposes, although she has two residences.This is because the centre of vital interests continues to be in Austria (her familycontinues to live in Austria). Austria is the country of residence and the sourcecountry. The working days in Germany are subject to taxation in Germany andthose in Austria are subject to Austrian taxation. However, the 20 working daysperformed in France are subject to taxation in Austria, as Austria is the country ofresidence.If Mrs Mayer is paid a bonus for year 1 in year 2, the allocation ratio would have tobe based on the number of working days in year 1, as the bonus is paid causally foryear 1. In this case, the causality principle overrides the accrual principle. Theallocation of the remuneration can therefore already be made in payrollaccounting or, if necessary, as part of the tax return.44
CONVINUS Global Mobility Insights - Frühling / Spring 2025ConclutionThe taxation of bonus payments for cross-border activities requires precisedocumentation and exact knowledge of the tax regulations.Double taxation agreements and the causality principle help to ensure a fairdistribution of the tax burden.It is essential for employees and companies to check the respective tax obligationsat an early stage in order to avoid additional claims or double taxation.Contact:ARTUS Tax Consultancy & AuditingStubenring 24A-1010 ViennaAustria+43 (0) 50 27880wien@artus.atartus.at45
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