Tax exemption for development workers

The tax exemption for development workers and experts in development aid enables private professionals throughout Austria to be fully exempt from income tax on earnings from foreign assignments in developing countries. This indefinite funding opportunity requires employment with a development organization recognized under the Development Cooperation Act and is governed by § 3 para. 1 no. 11 of the Income Tax Act within the framework of the three-year program of Austrian development policy. Applications can be submitted at any time, as there is no application deadline. Thus, the state promotes commitment to social cohesion, democracy, as well as work and social affairs, and contributes to strengthening development policy expertise.

Participants benefit from a sustainable financial advantage by having 60% of their taxable income exempted as a flat rate, provided the activity meets the requirements of a temporary foreign assignment. The prerequisites include uninterrupted deployment for at least one month, fulfillment of a deployment location outside the immediate Austrian territory, and performance under challenging conditions. This measure not only secures tax revenue but also enables Austrian development organizations to deploy highly qualified professionals to projects addressing poverty reduction, education, and infrastructure. Such tax reliefs motivate professionals to engage for the longer term, thereby optimizing the impact of Austrian development policy in the global context.