pilot swe
10th Apr 2007, 11:44
Hi,
Are there any people from Sweden working for NJE who would like to share me some info regarding the tax situation? As I understand you pay social to England and tax to Portugal. I think that within EU you also have to pay tax in your own country? Also, have you heard any details of a NJE pension scheme? Greatful for any help you can give in this matter.
CaptainProp
10th Apr 2007, 15:30
I qoute myself.....
"
1/ You should not be taxed twice for your income.
This means that if you pay 30% in the UK and then bring the money to another EU country, you should not be taxed for the money again. HOWEVER, you will still have to make a income declaration in the country where you live. If the tax is higher in this country, you could end up having to pay the difference in tax between the two countries.
2/Some countries have separate tax agreements. In some cases this means that you pay ALL the tax where your company has its main, "legal" office, in some cases it means that you pay ALL the tax where you have your main port of living.
3/ In some countries (usually the northern ones I believe) your employer pays a social security to the gouvernment NEXT to you pay check. This has nothing to do with your income tax, its seperated. Problem with this is that if you declare a "foreign" income and tax in some of these countries you will be asked to provide proof of this social security being payed for you in the country where you work....only problem is, most other countries dont have this social security payments....I have read the tax agreement between two countries where this applies, guess what? It clearly states that it is the responsibility of the EMPLOYEE to pay for this or to make sure that your employer pays for it.... "Hello Sir, as you probably know Im living in this country up north, would you mind giving me 20-something % more pay because I have to pay this in social security to xxxx?"
In this situation you could end up paying tax in country a, difference in tax to cover up to the tax level in country b + social security in country b... In my case that ended up being just under 60%....nice hu?
As a summary, you are ALWAYS responsible for paying income tax in at least ONE country if you live / work inside EU....everything else involves some level of tax dodging....Im not a tax expert but this has been my experience over the past 10 years...Remember to ALWAYS check for these individual tax agreements, if there is one, since they are over ruleing all other rules that may exist....
Good luck with your tax dodging!!!!! "
/CP