We would like to point out the following legislative change for the field of employment of Austrian tax residents in Slovak companies:

From January 1, 2020, following an amendment to the Austrian Income Tax Act, every Slovak employer who employs persons living in Austria - permanent residence (Austrian tax residents), will be obliged to register in Austria as an employer. The Slovak company is obliged to pay advances for dependent activity tax on their income. This obligation shall not apply until 31.12. 2019 only applied to companies which had a permanent establishment in Austria for the purposes of employment tax.

A natural person is subject to unlimited tax liability in Austria if he is resident in Austria or habitually resides there. Employers who do not have a permanent establishment for payroll tax in Austria and employ an Austrian tax resident must:

• register as a foreign employer with the Austrian tax office,

• send monthly wage summary,

• calculate monthly wages and deductions, and pay Austrian wage tax to the Austrian tax office (by the 15th day following the payment of wages),

• annually (probably by the end of February of the following year) send an overview of wages paid.

At VGD, we will be happy to help you with any problem (not only) on this issue. For more information, please click on our website, Facebook or Linked-In.