Austria Temporarily Increases Investment Allowance

Austria published the Federal Act amending the Income Tax Act 1988 in the Official Gazette on 3 November 2025, which temporarily increases the investment allowance. Introduced as part of the Eco-Social Tax Reform Act 2022, the investment allowance provides, subject to certain conditions and exclusions, that when purchasing or manufacturing depreciable fixed assets, an allowance can be claimed as an operating expense equal to:

• 10% of the acquisition or production costs, in general; or
• 15% of…