emilmsveen

Norwegian press reports that the EU-parlaments have decided to regulate how contracts no longer can be used to avoid social responsibilities.

Lavprisflyselskaper får ikke gi dårlige sosialytelser - DN.no
(in Norwegian, Google Translate it :P )

So basicly you have to pay your taxes where you are based. Homebase is defined as where you normally start your day and where the company dont pay for your accommodation.

Example used is Ryanair crew based in Begium can no longer pay social taxes to Ireland.

Doesnt say when the bill will come into effect.

Does anyone have more info??

Edited to give some more info in english..

dannyalliga

This is a HUGE thing, Ryanair and alikes will have to change all of their contracts!
Albd those "interpreneurs" who are setting up LTDs in Malta,Cyprus and so on are also warned now that there is a clear LAW.
Interesting times ahead.

Here's the link from the EU Parliament:
Better social protection for airline staff and cross-border workers

The SSK

TEN YEAR transition period, I am informed.

MCDU2

And during that transition period expect the Irish Revenue to be looking pretty hard to extract as much cash as it can from the contractors. We are broke after all and the Revenue is going in hard across all industries.

The SSK

The story I heard was that the Irish Revenue are not bothering to collect any tax/soc.sec. whatsoever from the Charleroi pilots, who are trousering all their gross pay. This could of course be a scurrilous lie.

GreatBelt

Having read the txt of the new rule on the EU site, I believe the following apply;

- The rule have immediate effect for all new/future pilots/cabin crew.

- For current crew, there is an interim period of 10 years. However, the indiviadual crew can apply the authorities in the country of the "home base" to be adopted under the new regulation with 3 month of notice.

- The rule will be in force very shortly.

This is indeed very good news for all of us.......

sarah737

GreatBelt is spot on.
Just one detail: if existing crew aplly within three months of entry into force it will be applicable from the date of entry into force. Entry into force will be 20 days after publication, so somewhere in May 2012.

Just to clarify: this is about social security contributions and not about taxes.
Taxes remain payable as per double tax convention between countries of residence of the employer and the employee. (eg: Pilot living in Italy working for FR in Beauvais will pay social security in France his taxes would be Italy and/or Ireland as per tax convention between those countries)

bulik

Tax conventions mention "international operations" when talking about aircraft operations, if ryanair flies between 2 airports within the same country and one or both of these airport happen to be bases (regardless of ryanair's denial) then the convention doesn't apply anymore but the national tax and labor law does.
It's coming, slowly but surely.