How to declare taxes for expatriates

Transcription

1 How to declare taxes for expatriates Mag. Markus Raml tax consultant and corporate consultant MMag. Maria Winklhofer tax consultant In cooperation with: Mag. Laura Panholzer March 2015

2 Contents Taxation in Austria Deductible Expenses Procedure 2

3 Taxation in Austria unlimited taxable domicile occupy apartment with the intention to keep and use it main residence stay is not just temporary always: stay longer than 6 months but: abandon rule by ministry if stay not longer than 1 year If tax resident in Austria: entire income = world income 3

4 Taxation in Austria limited taxable stay is just temporarily certain income earned in Austria earnings from an employment employment exercised in Austria in case of tax declaration: Additional taxable income of EUR

5 Taxation in Austria - deduction of tax by employer - no duty for tax declaration - unless: - two employments within a year - any other income more than EUR sick benefits, unemployment benefits 5

6 Taxation in Austria - tax rate: progressive rate - from 0% to 50 % - first EUR : 0% - above EUR to EUR : 36,5% - above EUR to EUR : 43,2 % - above EUR : 50 % - For example: EUR /year approx 35 % average tax 6

7 Double Taxation - Taxpayer is still tax resident abroad (country of primary residence) and - earns income in another country (source country) - Which country has the right to tax earned worldwide income? country of primary residence - Source country has the right to tax income of employment if employment is exercised in source country and exceeds 183 days - Elimination of double taxation exemption method credit method 7

8 deductible expenses foreign social insurance and retirement pool commuter tax allowance tools and supplies for work further education business trips double housekeeping driving home moving costs others get effective in year of flow of liquidity! 8

9 foreign (=home) social insurance and retirement pool # 717 contribution based on a legal duty voluntary basis does not legitimate a deduction under code number 717 (but 455, see page 23) 9

10 commuting between home and work place more than 20 km and public transfer is reasonable: little lump sum more than 2 km and public transfer is not reasonable: big lump sum Calculator: Minimum rides: commuter tax allowance # 718 Between 1-3: No claim Between 4-7: 1/3 Between 8-10: 2/3 From 11: full Plus: for each driven kilometer EUR 1,00 #

11 commuter tax allowance #718 all employers are entitled to a deductible commuting amount of EUR 291 (tax authority deduct it automatically in your assessment) 11

12 tools and supplies for work private computer and its hardware (printer, scanner, modem ) actual use for work supposed private use: 40 % deductible 60 % of price purchase - under EUR 400: deductible at once - more than EUR 400: deductible over 3 years 12

13 tools and supplies for work internet/mobile phone actual use for work split in private and job-related use # 719 work clothes typical professional or protective clothing (eg uniforms, overall, protective helmet, white coat) specialised trade not clothes usually worn privately (eg suit) normal trade cleaning costs - if extraordinary dirt - bill by cleaning company 13

14 tools and supplies for work specialist literature # 720 actual use for work no literature based on general education (eg encyclopedia, newspapers) 14

15 further education # 722 expenses for - continuing/specialist training: connection with present (at least related) profession is necessary - retraining sort of expenses: - course - accommodation - meal for calculation see page 16 - journey 15

16 business trips # 721 business trip (definition): - professional obligation or any other professional motive - more than 25 km from center of activity - length of travel: more than 3 hours - no new center of activity permanent activity: passes 5 days new center arises periodic activity (at least once a week): passes 5 days new center arises not periodic activity: passes 15 days new center arises - trips to parent company abroad: another center of activity no deductible expenses, except the actual costs of hotel 16

17 business trips # 721 covers: travel expenses - ticket or kilometer allowance (EUR 0,42 per kilometer) meals - 24 hours: EUR 26,40 per day - longer than 3 hours: EUR 2,20 per hour accommodation - EUR 15 per night or - actual higher expenses (proofed by bill) 17

18 double housekeeping # 723 keeping family domicile abroad: - family domicile is where married taxpayer lives with (marriage) partner single taxpayer lives with underage child (<18years) single taxpayer without child has his closest personal relation plus own apartment - foreseeable temporary stay: no harm if family domicile is kept abroad and family accompanies taxpayer daily return not reasonable - distance more than 120 km 18

19 double housekeeping switching domicile not reasonable - occupation from partner - constant changing place of work - temporary stay in the first place (limited 4-5 years) - any family member in need of care - children (entitled to maintenance) live in common household and moving whole family economically not reasonable if switching domicile is reasonable: # married taxpayer: double housekeeping for maximum 2 years - single taxpayer: double housekeeping for maximum 6 months 19

20 double housekeeping sort of expenses: - rent - operating costs - diverse insurance costs (fire, water, ) - electricity - heating costs - usual furniture (domestic needs) based on an apartment with maximum of 55 m² # hotel (maximum EUR per month just temporary or isolated overnight stays per month) 20

21 time limit driving home - permanent double house keeping: no time limit - temporary double house keeping 2 years (married taxpayer) 6 months (single taxpayer) number of driving home - married taxpayer or taxpayer with child: weekly basis - single taxpayer: monthly basis except!! considering the long distance a weekly/monthly return to home is completely unusual sort of expenses -actual used vehicle (is not obliged to take the cheapest) - limited amount: EUR #

22 moving costs job related move - first job - change of employer - transfer of job domicile abroad must be given up! # 724 sort of expenses - transport and packing costs for furniture - craftsmen s costs for removal furniture - house hunting (own driving costs, advertisement, agent) - rent for old apartment during cancelation period 22

23 other expenses language course job related motive necessary professional advantage in current job job interview costs for job application eg travelling expenses, application portfolio #

24 other expenses tax consultant expenses are deductible in full height # 460 contribution to voluntary retirement/health/accidental insurance just a quarter of your expenses just effective if more than EUR 240 # 455 automatic deducted lump sum from tax authority EUR 60 drop out in case of taxable earnings to the amount of EUR ; deductible expenses decrease over an amount of EUR

25 other expenses educational related expenses private school instead of public school school is situated out of domicile lump sum: EUR 110 per month # 735 children s allowance children (<18years) live in common household household must be in EU, Norway, Liechtenstein, Iceland or Switzerland EUR 220 if taxpayer asserts alone; EUR 132 if both parents if children do not live in common household: EUR 132 attachment L1k 25

26 other expenses costs for child care for children under 11 years pre-condition: children s allowance maximum EUR 2.300/each child and year official child care, like kindergarten qualified person after school care (Nachmittagsbetreuung) holiday care attachment L1k 26

27 simplification for expatriates allowance of expense already by employer if expenses are paid by employer! following expenses: - moving costs - double housekeeping - lump sum for children s school - driving home for any other expenses: tax declaration is necessary written notice to tax authority by employer - at the beginning of employment and each following year for each employee 27

28 simplification for expatriates expatriate: - during last ten years no domicile in Austria - by order of foreign employer - employment with Austrian employer (within corporate group or plant) - right to tax: Austria stay: - just temporary, not longer than 5 years - domicile abroad must be kept 28

29 procedure do declare just online: first registration - complete first declaration with your data - certified mail: member identity (= Teilnehmer-Identifikation ) and pin code - tax number: is assigned automatically with first assessment 29

30 Procedure do declare 30

31 surname name social security number gender: male - female street and streetnumber postal code place proof of identity number of identity card user-identification 31

32 32

33 year 33

34 pay slip forwarded by employer to fiscal authority collection of filled data save data pre-calculation pre-calculation with details declare! 34

35 35

36 special expenses 36

37 expenses Job description 37

38 attachment for children Fill data of child: surname name social security number if existing or just birthday date 38

39 Thank you for your attention! available: Raml und Partner Steuerberatung GmbH Museumstraße 31a - A 4020 Linz Telephone +43(0)732/ office@raml-partner.at 39