If you, as a company or a sole trader, place your employees in Austria to perform construction works for an Austrian client, the Austrian client can deduct the amount of 25% in every invoice. This measure acts as protection of the Austrian client in case it is proven that the given employees are supposed to be insured in the Austrian social system (for instance, 24 months after placement of the employees). A part of the deduction in the amount of 20% will go to Gebietskrankenkasse (a health insurance company designated according to the workplace) and a part in the amount of 5% will go to the relevant tax office. The given amount is often included in the payable payroll tax.
Contributions to Gebietskrankenkasse
CONTRIBUTIONS TO GEBIETSKRANKENKASSE
REFUND OF CONTRIBUTIONS, EXEMPTION FROM CONTRIBUTIONS
Claiming the contributions to Gebietskrankenkasse is a simple process; all you need is one form and the contributions (the amount of 20%) can be transferred to your account rather quickly. Processing of the claim lasts about 2 weeks. You can be completely exempt from the obligation of deduction of these contributions providing that you register your company as an employer in the HFU list. However, this is possible only if you have paid contributions to the Austrian social system for the period of 3 years.
The given amount should be deducted by every Austrian client that wants to be protected against a possibility that your employee is not insured in the Austrian social system. That means the regulation protects Austrian companies, which wish to avoid potential problems or sanctions.
Yes, you may ask for refund of the GKK contribution immediately after it is deducted. The processing period lasts about 2 weeks. If you have your employee wages processed due to voluntary payment of the income tax, the amount of 5% is included in your payment of the income tax.
