WKÖ Chief Demands Complete Tax and Duty Exemption for Tips

"What guests voluntarily give to waiters for good service should no longer be collected by the tax office," it was stated in a release on Saturday. Tips are a sign of appreciation and not income. This is especially true in gastronomy and hospitality, where staff often perform at their best under enormous pressure, according to Mahrer.
Mahrer Advocates for Complete Tax and Levy Exemption
Tips are currently generally subject to social security contributions. In many cases, there is a flat rate - but this can vary depending on the industry and federal state. For waiters in Vienna, for example, it is around 60 euros per month. Anything above that is subject to full social security contributions. While the amounts were previously difficult to verify, with the increasing trend towards card payments, the given tips also appear in the cash register. Recently, reports of additional demands by the ÖGK after audits caused a stir. The government program states that the often different rules by federal states should be evaluated and standardized nationwide.
The chamber feels reinforced by a self-commissioned Market study (1,000 participants; April 11-14, margin of error plus/minus 3.15 percent). According to this, 88 percent of Austrians were in favor of tax-free tips. 87 percent were against businesses paying taxes on tips. Half of the respondents would give less tips in the event of taxation.
For FPÖ "Nasty ÖVP Trick"
For the FPÖ, Mahrer's demand is a "nasty ÖVP trick." In the government program, which Mahrer was a leading negotiator of, the tax and levy exemption is not mentioned at all, according to the FPÖ tourism spokesperson Christoph Steiner in a release.
(APA/Red)
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