AU March 12 th Tax scheme for foreign researchers

Transcription

1 AU March 12 th 2014 Tax scheme for foreign researchers

2 Headlines Expat Scheme Tax scheme for foreign researchers (and key employees) Introduction - Why, how and who? Conditions to get under the scheme at arrival Conditions for staying on the scheme/ what to observe at departure if the person wants to return Taxation under the scheme Where to find more information Side 2 Thursday den 13. March 14

3 Why? Incentive to bring foreigners whit special abilities to Denmark. People who would not have come otherwise. Hopefully it will bring more jobs to Denmark on a long term basis. NOT an automatic benefit for foreign researchers. The scheme applies to all sectors and to both Danes and foreigners. Side 3 Thursday den 13. March 14

4 How? Which taxation Special tax scheme with 26 % flat rate tax - 8% labour market contribution + 26% tax (31,92% gross) Of the salary from the employer flat rate tax Until 5 years during a lifetime Side 4 Thursday den 13. March 14

5 Who? Foreigners with a high income. At least kr. plus ATP per month. (Not today s main subject). or Researchers employed at a University (or a research institution). Researchers employed elsewhere. To be approved under the scheme as a researcher they have to: - have a Ph.D. or similar - have a job, where research is the main topic Side 5 Thursday den 13. March 14

6 Who? Approval Researchers employed at the University à Universities can approve whether the person has researcher-level. Employment must be as scientific staff, as Post Doc, assistant professor eg. which can only be employed with researchers. Other researchers à Qualifications and job-content have to be approved by the Researchers Council at the commencement of the job. Side 6 Thursday den 13. March 14

7 Conditions for the special tax scheme Not liable of tax to Denmark within the latest 10 years in certain ways Tax liability to Denmark must start at commencement of the employment 1 month rule at entering Employment with a Danish company or institution or a Danish branch of a foreign company Side 7 Thursday den 13. March 14

8 Conditions 10 year rule No tax liability to Denmark within the last 10 years before employment Either full tax liability (liable of global income) - by housing, or by staying for more than 6 months or limited tax liability - on earned income or commercial income, or what replaces that kind of income, like Danish; pension, SU, Ph.d.-fundings etc.) Side 8 Thursday den 13. March 14

9 Conditions 10 year rule Periods under the expat-scheme are not taken into account Changing jobs -1 month rule Okay, not to terminate tax liability if there goes until 1 month between working in two different expat-jobs Side 9 Thursday den 13. March 14

10 Conditions 10 year rule - exception Teachers at summer schools etc.: Paid by the University or research institute only as limited liable to tax (total duration of no more than 12 month within the latest 10 years) and guest researchers funded from abroad Solely funded from foreign funds - OK if fully liable to tax (Housing) (total duration of no more than 12 month within the latest 10 years) Side 10 Thursday den 13. March 14

11 Maternity/Paternity Leave Maternity Leave will be judged as employment - applies for both periods with salary and periods with public fundings - the period on leave is using of the total amount of months under the scheme - possible to get back on the scheme 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 Side 11 Thursday den 13. March 14

12 Taxation under the scheme Application for the special tax rules can be retrospective for up to 3 tax years (for 2013 no later than 1 May 2017) For tax years where the special tax rules have been chosen it is also from 2011 possible to opt out of the scheme with retrospective effect (for 2011 no later than 1 May 2015) Side 12 Thursday den 13. March 14

13 Income taxed/ not taxed under the scheme Income approved for taxation under the special tax scheme is; money, car and phone from the employer All other income is taxed according to ordinary tax rules Employee benefits (free food and accommodation, news papers, clothing, health care etc.) Income from other sources (income from other employments not approved under the special tax scheme, interest income, dividend on shares etc.) Side 13 Thursday den 13. March 14

14 Taxation under the scheme Taxation Gross income is taxed with a flat rate tax of 26 % No deductions except: - mandatory payments for social security - for fully tax liable persons, resident in Denmark - from EU or where Denmark has an agreement Paid interest rates Non-commercial deficits in ordinary income can not be carried forward to next year or to your spouse. Your spouse can not carry forward non-commercial deficits in ordinary income Side 14 Thursday den 13. March 14

15 What is most beneficial? We will NOT guide you (Rough) Guidance can be found by using this site: skat.dkà Borgerà Under B find Beregn din skat (Calculate your tax) The site is only in Danish, so you might need help from a Dane Side 15 Thursday den 13. March 14

16 Where to find more information Contains: P nr. 28 (GB) Tax scheme for foreign researchers and key employees (guideline) and Application form including information: A - Approved Researcher Jørgen Staadsen Petersen Telephone Niels Smedegaard Telephone Side 16 Thursday den 13. March 14