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 09/11/2017 2

3 General introduction Why? 09/11/2017 3

4 General introduction Who? 2 ways in Researcher High salary 09/11/2017 4

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 09/11/2017 5

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) 09/11/2017 6

7 General introduction How? Lifetime Tax scheme Max 5 years on tax scheme for foreign researchers and highly paid employees during a lifetime 09/11/2017 7

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 09/11/2017 8

9 Taxation under the scheme Deduction for non-commercial loss Deduction SOLD Year 2 Year 2 09/11/2017 9

10 Taxation under the scheme Deduction for non-commercial loss Deduction SOLD Year 2 Year 2 09/11/

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. 09/11/

12 10 year rule The researcher is not allowed within the latest 10 years to have been fully tax liable to Denmark or limited tax liable to Denmark of salary or business income e.g. Periods with researcher taxation are not taken into account. Fully tax liable (of global income) If you have housing or have stayed for over 6 months in Denmark. Limited tax liable have taxable danish sources If you have: Salary from a Danish employer for work in Denmark, Danish business income, Board fees from Denmark, or Kind of ongoing income replacing one of the three previous (Pension, SU, PhD scholarship, unemployment allowance, etc.). (Legal: dividend, rent of 1-family house, etc.). 12

13 Cutting the period into minor pieces? Important to know the rules 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) If you move out, please give SKAT notice! 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 09/11/

14 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) 09/11/

15 Opting in or out of the scheme Deadlines Arrival May 1 st Opt in Opt out 09/11/

16 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) 09/11/

17 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 / 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 09/11/

18 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 /11/

19 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 /11/

20 Questions?? Thank you for your attention 09/11/