Key features of the Budget Measures Act 2026

The Budget Measures Act 2026 – currently in the form of the government's draft proposal – includes several changes (often tightenings), particularly regarding the employee bonus. Selected aspects are presented below in overview.

Tax-free employee bonus for 2026

The tax-free employee bonus (though subject to other payroll taxes and contributions) will also be extended for 2026, but it is capped at a maximum of €500 (compared to €1,000 in 2025) and only applicable to allowances and bonus payments made between July and December 2026. Payments made in the first half of 2026 are explicitly not eligible. The tax-free status of the employee bonus is linked to the existence of a "wage-shaping regulation" – this includes a collective agreement, and in principle, also a works agreement, provided that under certain conditions, it's a contractual agreement applicable to all employees. If both an employee bonus and a profit-sharing scheme are granted in 2026, a total of €3,000 will be treated as tax-free. As before, the employee bonus must be a payment that has not been customarily granted. Consequently, it cannot be a payment based on performance agreements, regularly recurring bonus payments, or extraordinary salary increases.

Price Marking Act

The Budgetary Measures Act 2026 is intended to increase penalties for violations of price labelling and introduce a three-stage system. Under the motto "Advise Instead of Punish", an improvement order will be issued as a first step in the event of violations. If this order is not complied with within a reasonable period, a fine for an administrative offence of up to €2,500 per product (maximum €10,000) will follow. In cases of repeated offences, a penalty of €3,750 per product (maximum €15,000) is planned. The "Advise Instead of Punish" principle can then only be reapplied after 12 months have elapsed.

Refinements to exit taxation

As part of applying the non-assessment concept to exit taxation, it is envisaged that the taxpayer (or their legal successor) must annually provide proof to the tax authority that no disposal of the asset or derivative has yet occurred with regard to the unassessed tax liability. Proof is to be provided by 31.12.2026 for all tax liabilities not assessed after 31.12.2005, provided that the amount underlying the original non-assessment exceeds €100,000.

The annual obligation to provide proof for future non-assessments is applicable if the income determined upon relocation or gratuitous transfer of assets, derivatives, and cryptocurrencies exceeds €100,000 in total in a tax assessment year. Failure to comply with this obligation will result in a mandatory assessment of the tax liability for that year. Both the one-off proof for previous periods and the recurring proof can be submitted in writing or via FinanzOnline ("other submission") and typically include depot statements, company register extracts, or comparable confirmations.

Image: © Adobe Stock - Irene Kulinchyk