Premium-Favored Future Provision

The funding measure Premium-Eligible Future Provision supports individuals subject to unlimited tax liability throughout Austria in financially optimizing their private retirement provision. The program grants a flat-rate tax credit of 2.75% of the contributions made in the calendar year to a premium-eligible future provision institution, plus a percentage determined according to § 108 para. 1 EStG. The prerequisite is that no statutory old-age pension is being received and an irrevocable waiver declaration for at least ten years is submitted. One-time premiums pursuant to § 108i para. 1 nos. 2 and 3 EStG are excluded from the funding. Applications can be submitted at any time through the respective future provision institution using the official form, accompanied by the declaration pursuant to § 108g EStG.

This measure aims to strengthen private retirement provision and secure tax revenue in the long term. In particular, individuals who do not rely on state pensions can make their provision contributions more attractive through tax relief. The annually unlimited ongoing funding is designed as a direct grant and is targeted at all who commit to waiving claims for reimbursement of the refunded tax benefits for at least ten years. A maximum of 1.53% of the 36-fold maximum contribution base for social insurance is reimbursed. There is no deadline for the processing of funding; applications can be submitted continuously. Required documents are the official form of the future provision institution and the declaration pursuant to § 108g EStG. The processing is carried out in cooperation with the Federal Ministry of Finance, Department IV/7 Wage Tax.