Year-end tax tips 2026 in Austria: 10 things to do by 31 December

At the end of 2026, one move pays most for the self-employed and GmbHs in Austria: buy planned investments by 31 December 2026, because only until then is the Investitionsfreibetrag (investment allowance) 20 % instead of 10 % of the cost (§ 11 and § 124b Z 480 EStG 1988). On 1 January 2027 bonds also stop counting for the profit allowance and the home-office allowance ends, so 2026 is the last year for several tax breaks.

Law as of 10 November 2026

The 2027 changes are in the Budgetbegleitgesetz 2027-2028 (BGBl. I Nr. 62/2026). It has been passed and published. The ten steps below are ordered by the money they bring and assume your business year is the calendar year.

The checklist at a glance

1. Investment allowance: 20 % only until 31 December

For costs that demonstrably fall between 1 November 2025 and 31 December 2026, the Investitionsfreibetrag is 20 % of the acquisition or production cost, 22 % for green investments. From 1 January 2027 the rates go back to 10 % and 15 % (§ 124b Z 480 EStG 1988). The allowance is an extra business expense; depreciation runs alongside as normal (§ 11 Abs. 1 Z 3 EStG 1988).

The conditions under § 11 EStG 1988:

1. New, depreciable fixed assets with a useful life of at least four years, used by a business in Austria.
2. Not eligible: used assets, low-value assets, cars (except those with 0 g CO₂ per km), buildings, fossil-fuel plants and intangibles outside digitalisation, ecology and health.
3. On costs of at most €1,000,000 per business year.
4. Not with the Basispauschalierung or Kleinunternehmerpauschalierung (flat-rate profit schemes, § 11 Abs. 1 Z 4).
5. Keep the asset four years, or the allowance is clawed back.

The year of acquisition counts, not the year of payment (§ 11 Abs. 4). If an acquisition is only completed in 2027, you get the 20 % only on partial amounts already capitalised in 2026. A GmbH or FlexCo can claim the investment allowance too.

2. Profit allowance: invest, bonds for the last time

On profit up to €33,000 you get a 15 % basic allowance without investing. For profit above that you need qualifying investments in the same business year, with a maximum Gewinnfreibetrag (profit allowance) of €46,400 a year (§ 10 EStG 1988). In 2026 certain bonds still cover it; for business years starting 2027 to 2029 they no longer do. The free profit allowance calculator shows how much you need to invest; all the rules are in the guide to the profit allowance 2026.

You cannot have both for the same asset: if it covers the investment-based profit allowance, it gets no investment allowance (§ 11 Abs. 3 Z 1 EStG 1988). Work out both options before you decide.

3. Low-value assets: write off up to €1,000 at once

Assets costing up to €1,000 each are deducted in full in the year of acquisition instead of being depreciated over years (§ 13 EStG 1988). If you use the Einnahmen-Ausgaben-Rechnung (cash-basis accounting), the year of payment counts: a laptop you buy in December and pay for in January falls into 2027. Kleinunternehmer without input VAT deduction use the gross price. Details in the guide to low-value assets.

For more expensive purchases the half-year rule applies: if you use an asset for no more than six months in the business year, you get only half a year's depreciation (§ 7 Abs. 2 EStG 1988). A December purchase therefore brings half the depreciation for 2026, but the investment allowance counts in full.

4. Pay expenses before the turn of the year

With cash-basis accounting you deduct expenses in the year you pay them and tax income when you receive it (§ 19 EStG 1988). Paying open supplier invoices in December lowers your 2026 profit.

Three limits:

1. 15-day rule: regularly recurring payments such as rent that flow shortly before or after the turn of the year belong to the year they relate to (§ 19 Abs. 1 Z 1 and Abs. 2 EStG 1988). The tax administration reads "a short time" as up to 15 days (EStR 2000 Rz 4631). January rent you pay on 28 December counts for 2027.
2. Prepayments: if you prepay rent, advice or administration for more than the current and the next year, you must spread the cost (§ 19 Abs. 3 EStG 1988).
3. Voluntary SVS prepayments: in 2023 the Federal Finance Court refused to treat a social-insurance prepayment made on 31 December as an expense of that year, because the credit could be refunded on request (BFG 28.3.2023, RV/4100308/2021). It became deductible only once the SVS set the credit off against contributions.

5. Home-office allowance: the last time

For business year 2026 you still deduct your home office with the Arbeitsplatzpauschale of €1,200 if you have no other room for your work, otherwise €300 (§ 4 Abs. 4 Z 8 EStG 1988). For business years from 2027 the allowance is abolished; ergonomic furniture up to €300 a year remains. More in the guide to the home-office allowance.

6. Donations from the business

Donations from business assets to approved organisations are business expenses as long as they do not exceed 10 % of the profit before the profit allowance (§ 4a Abs. 1 EStG 1988). Anything above can be deductible as a special expense. With cash-basis accounting you must pay by 31 December.

7. Check the small-business limit for 2027

The VAT exemption for Kleinunternehmer applies as long as turnover does not exceed €55,000 in the previous year and in the current year (§ 6 Abs. 1 Z 27 UStG 1994). If you exceed it in 2026 by no more than 10 %, you stay exempt until 31 December 2026, but in 2027 you charge VAT, because 2026 is then the previous year. If you are close to the limit, know before year-end whether your January invoices will carry VAT.

8. Cash register: the annual receipt

If you run a Registrierkasse (cash register), at the end of each calendar year you must print the monthly receipt showing the year-end counter as the Jahresbeleg (annual receipt), check it and keep it for seven years (§ 8 Abs. 3 RKSV; § 132 BAO). It is December's monthly receipt.

9. For the GmbH: shareholder account and staff bonus

Shareholder account: from the business year ending in 2027, a GmbH's receivable from a shareholder above €50,000 at the balance-sheet date counts as a distribution unless it is settled or set up as an arm's-length loan; 27.5 % KESt is due on the excess (§ 8 Abs. 2a KStG 1988). For a calendar-year GmbH the first test date is 31 December 2027, so 2026 is the year to bring the balance down. Everything in the guide to the GmbH shareholder account.

Staff bonus 2026: allowances and bonuses an employer grants from July to December 2026 are tax-free up to €500 per employee. The payment must rest on a works agreement or, where there is no works council, on an agreement covering all employees. It must be additional, so not something usually paid before (§ 124b Z 478 lit. f EStG 1988).

10. Employee tax assessment for 2021 only until 31 December

You can apply for an Arbeitnehmerveranlagung (employee tax assessment) within five years of the end of the year (§ 41 Abs. 2 EStG 1988). For 2021 the deadline is 31 December 2026. This applies to anyone employed in 2021, including people who are self-employed today.

Worked example: December purchases in 2026

A graphic designer is a Kleinunternehmer and uses cash-basis accounting without a flat-rate scheme. Without any action he expects a 2026 profit of €32,000 after social-insurance contributions. In December he buys and pays for:

1. A laptop for €990 gross: a low-value asset, deductible at once: €990.
2. A large-format printer for €4,000 gross, new, five-year useful life: half-year depreciation €4,000 ÷ 5 × 0.5 = €400, investment allowance €4,000 × 20 % = €800.
3. A donation to an approved organisation: €300 (below 10 % of profit).

Extra business expenses: €990 + €400 + €800 + €300 = €2,490. Profit falls to €32,000 − €2,490 = €29,510.

Tax under the 2026 tariff (§ 33 EStG 1988): €0 up to €13,539, 20 % on €8,453 (€1,690.60), plus 30 % on €5,208 (€1,562.40) or on €3,091.50 (€927.45). If he buys the printer only in January 2027, he gets just 10 % investment allowance, so €400 instead of €800, and all three deductions move to 2027.

Austria is not Germany

Many year-end checklists come from Germany and do not fit here. In Austria the low-value asset limit is €1,000, not €800. The "short time" around the turn of the year is up to 15 days for the Austrian tax administration, 10 days in Germany. There is no Investitionsabzugsbetrag; the closest Austrian equivalents are the profit allowance and the investment allowance, and both are final allowances, not depreciation brought forward.

Norman in Austria

Norman is an AI bookkeeping app for the self-employed and companies. In Germany and Poland it captures receipts by photo, matches bank transactions, writes invoices and prepares tax returns; for Austria, Norman is in preparation. Until then you will find free guides to Austrian law here, the profit allowance calculator and everything about Norman's launch in Austria.

Frequently asked questions

What can I still deduct before the end of 2026?

Investments with the 20 % investment allowance, assets up to €1,000 at once, 2026 expenses you pay now and donations up to 10 % of profit. With cash-basis accounting you must pay by 31 December; for the investment allowance the acquisition date counts.

Is it worth bringing investments forward to December 2026?

Yes, if you need them anyway: until 31 December 2026 the investment allowance is 20 %, from 2027 only 10 %. Buying something only for the tax break does not pay, because it saves only part of the money you spend.

Can I deduct January's rent in December?

No. Regularly recurring payments that flow up to 15 days before or after the turn of the year belong to the year they are paid for. January rent counts for 2027.

Do I get the investment allowance with a flat-rate scheme?

No. With the Basispauschalierung or Kleinunternehmerpauschalierung there is neither the investment allowance nor the investment-based profit allowance (§ 10 Abs. 1 Z 6 and § 11 Abs. 1 Z 4 EStG 1988). You still get the basic profit allowance.

When is the 2026 tax return due?

Via FinanzOnline by 30 June 2027, on paper by 30 April 2027 (§ 134 BAO). Longer deadlines apply with a Steuerberater (tax adviser).