Tax scheme for foreign researchers and highly paid employees. Niels J. Smedegaard, SKAT

Transcription

1 Tax scheme for foreign researchers and highly paid employees Niels J. Smedegaard, SKAT

2 Programme General introduction Taxation under the scheme Cutting the period into minor pieces? Opting in or out of the scheme Leave Expiry of the period? Further information Questions? Why, Who, How Two separate calculations Deduction for non-commercial loss Pension Important to know the rules 10-year rule and exception Deadlines

3 General introduction Why?

4 General introduction Who? 2 ways in Researcher High salary

5 General introduction Who? Not taken into account: Taken into account:? High Salary Non-guaranteed bonuses Cash Company car Non-taxed pension payments Taxed pension payments Employers payment of personal expenses pr. month as an average, must be guaranteed in the contract Other kinds of employer paid goods, e.g. housing Free health insurance Free phone

6 General introduction How? Special tax scheme with 26 % flat rate tax on the salary from the employer - 8% labour market contributions and 26% tax (31,92% net)

7 General introduction How? Lifetime Tax scheme Max 5 years on tax scheme for foreign researchers and highly paid employees during a lifetime

8 Taxation under the scheme Two separate calculations Researcher taxation All other income Company car Additional health insurance House rental income No deduction Free housing + Deduction Free phone Employers payment of personal expenses DKK Money All other employment Dividends on shares

9 Taxation under the scheme Deduction for non-commercial loss Deduction SOLD Year 2 Year

10 Taxation under the scheme Deduction for non-commercial loss Deduction SOLD Year 2 Year

11 Taxation under the scheme Pension Tax No tax No tax Tax Tax: 60 % Tax:? % Foreigner and only employed for a period of maximum 5 years at a University? You can choose to get the money paid out

12 Cutting the period into minor pieces? Important to know the rules If you move out, give SKAT notice! Employment with a Danish company, institution or a Danish branch of a foreign company (not controlled by the employee) Not been liable to tax within the latest 10 years. (10-year rule) Not fully tax liable Nor limited tax liable (liable of global income) (tax on Danish sources) Changing jobs 1 month-rule Tax liability has to start because you start in a job, that entitles you to be taxed as a researcher

13 Cutting the period into minor pieces? 10-year rule exception Teachers at summer schools etc. Paid by the University or research institute only as limited tax liable (total duration of no more than 12 months within the latest 10 years) And guest researchers funded from abroad Solely funded from foreign funds - OK if fully tax liable (Housing) (total duration of no more than 12 months within the latest 10 years)

14 Opting in or out of the scheme Deadlines Arrival May 1 st Opt in Opt out

15 Taxation under the scheme What is most beneficial? skat.dk Beregn din skat (Rough) Guidance can be found by the tax calculator at (Calculate your tax)

16 Leave Maternity/paternity leave will be considered as employment Applies to both periods with salary and periods with public funding The period on leave is using of the total amount of months under the scheme Still on the scheme Average monthly salary of DKK 63,200/ have to be met if under scheme as highly paid employee Leave without salary will be considered as a period without employment Must give up tax liability to be able to get back on the scheme

17 Expiry of the period Apply for a tax card To avoid having to pay the standard tax rate of % If you need help, please call

18 Further information Telephone SKAT s main no SKAT foreign tax no skat.dk/researchers Having tried everything else: Lene Bernth Fjord Telephone Niels Smedegaard Telephone

19 Questions?? Thank you for your attention