ClimateTicket & commuter allowance

Favorable cost sharing/replacement by employers 

Since 1.7.2021, the provision or (partial) assumption of the costs of a public transport ticket (KlimaTicket, 1-2-3-Ticket, Netzkarte, Streckenkarte, etc.) by the employer is possible tax-free. The only prerequisite is that the card is valid at least at the place of residence or work. In addition, the tax concession requires that the tickets are valid for journeys within a longer period of time (weekly, monthly or annual tickets), one-way tickets and day tickets are therefore not included! The transferability of such tickets is not detrimental to tax concessions. However, if additional costs are incurred for this, only those costs that have to be paid for a non-transferable ticket are eligible.

 

Impact on commuters so far

However, this option had a noticeable disadvantage for commuters in particular. If a (regional or Austria-wide) ticket was (partially) financed by an employer, there was no entitlement to a lump-sum commuter allowance or the commuter euro. Against this backdrop, it was therefore even more favorable to charge any cost sharing by employers to payroll tax in order to continue to benefit from the lump-sum commuter allowance and the commuter euro.

 

Innovation with effect from 1.1.2023

With effect from 1.1.2023, the following clarification has now been made by the legislator (§ 16 para. 1 no. 6 lit i EStG in conjunction with § 124b no. 398 EStG), whereby partial consideration of the commuter allowance is possible as follows:

  • In the 1st step, the commuter allowance is calculated without considering a public transport ticket.
  • In the second step, the value of the ticket is deducted from the commuter allowance of the employee in accordance with § 26 Z. 5 EStG. This prevents unfair overpromotion.
  • It is important that the amount awarded is entered in the payroll account and reported on the L16.

The commuter euro continues to be due in full.

 

Example for illustration

Issue: A commutes from her place of residence in Mattersburg to her place of work in Vienna on 19 working days; according to the commuter calculator, A is entitled to a small commuter allowance in the amount of EUR 2,016 per year (EUR 168 per month) as well as the commuter euro in the amount of EUR 142 per year. As of January 2023, the employer will pay her the cost of a Vienna annual travel pass worth EUR 365. The employer takes the commuter allowance into account in the current payroll accounting (excerpt from LStR 2002 Rz 271a).

Effect in the case at hand: With the assumption of the costs of the Vienna annual ticket, 1/12 (= EUR 30.42) is to be deducted from the monthly commuter allowance as of January (168 - 365/12). Thus, A receives a monthly lump-sum commuter allowance of EUR 137.58, and the commuter allowance is available for the entire route without deductions

 


Author:

Michaela Lexer
+43 5 70 375 - 8711
michaela.lexer@bdo.at