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Aarhus – March 19th 2015
Tax scheme for foreign researchers
Tax scheme for foreign researchers
Headlines
Presentation of the special tax scheme for foreign researchers (and key
employees)
Introduction: Why, how and who?
Conditions to get under the tax scheme at arrival
Leave
Retrospective
What is most beneficial?
Taxation after the scheme
Where to find more information
Side 2
19. marts 2015
Tax scheme for foreign researchers
Why?
Incentive
to bring foreigners with 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
19. marts 2015
Tax scheme for foreign researchers
How? – Which taxation
Special tax scheme with low flat rate tax
Of the salary from the employer
Until 5 years (60 months) during a lifetime
Side 4
19. marts 2015
Tax scheme for foreign researchers
How? - Taxation under the scheme
Taxation
Gross income is taxed with a flat rate tax of 26 %
8% labour market contribution + 26% tax (31,92% net)
No deductions
*
Deficits can not be carried forward
Non-commercial deficits for example interest expense on property can
not be carried forward to next year or to your spouse.
Your spouse can also not carry forward your non-commercial deficits
* mandatory payments for social security abroad
Side 5
19. marts 2015
Tax scheme for foreign researchers
How? - Taxation under the scheme
* mandatory payments for social security abroad
No deductions at all?
Only one exception which is quite uncommon:
Deduction for mandatory payments for social security abroad,
for fully tax liable persons, resident in Denmark/
from EU or where Denmark has a special agreement
Side 6
19. marts 2015
Tax scheme for foreign researchers
How? - Taxation under the scheme
Income taxed or not taxed under the scheme
Income approved for taxation under the special tax scheme is; salary, car, phone,
health care from the employer
All other income is taxed according to ordinary tax rules
Employee benefits/ pay with goods (free food and accommodation, news papers,
clothing, etc.)
Income from other sources (income from other employments not approved under the
special tax scheme, interest income, dividend on shares etc.)
Side 7
19. marts 2015
Tax scheme for foreign researchers
Who?
Key employees with a high income. At least 61.500 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 it is necessary to:
- have a Ph.D. or similar
- have a job, where research is the main topic
Side 8
19. marts 2015
Tax scheme for foreign researchers
Who?
Approval
Researchers employed at the University
 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
 Qualifications and job-content have to be approved by the
Researchers Council at the commencement of the job.
Side 9
19. marts 2015
Tax scheme for foreign researchers
Conditions to get under the scheme at arrival
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 10
19. marts 2015
Tax scheme for foreign researchers
Conditions to get under the scheme at arrival
The 10 year rule
No tax liability to Denmark within the last 10 years before employment
Neither full tax liability (liable of global income)
- by residence, or by staying for more than 6 months
nor limited tax liability (tax on Danish sources)
- on earned income or commercial income, or what replaces that kind of
income, like Danish pension, state education grant (SU), Ph.D. funding
etc.)
Side 11
19. marts 2015
Tax scheme for foreign researchers
Conditions to get under the scheme at arrival
10 year rule
Periods under the special tax-scheme are not taken into account
Changing jobs -1 month rule
Okay, not to terminate tax liability if it takes up to1 month between working in two
different (researcher) jobs
If more than 1 month between two jobs
To be able to come back on the scheme, terminate tax liability – leave Denmark
Side 12
19. marts 2015
Tax scheme for foreign researchers
Conditions to get under the scheme at arrival
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 (residence)
(total duration of no more than 12 month within the latest 10 years)
Side 13
19. marts 2015
Tax scheme for foreign researchers
Leave
Maternity or Paternity Leave will be judged as employment
- applies for both periods with salary and periods with public funding
- 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 14
19. marts 2015
Tax scheme for foreign researchers
Retrospective
Deadlines
Application for the special tax scheme can be retrospective for up to 3 tax years
(for 2014 no later than 1 May 2018)
For tax years where the special tax scheme have been chosen it is also from
2011 possible to get out of the scheme with retrospective effect
(for 2011 no later than 1 May 2015)
Side 15
19. marts 2015
Tax scheme for foreign researchers
What is most beneficial?
We are NOT allowed to guide you
(Rough) Guidance can be found by using this site:
skat.dkSearch for; “Beregn din skat” (Calculate your tax)
The site is only in Danish, so you might need help from a Dane
Side 16
19. marts 2015
Tax scheme for foreign researchers
Taxation after the scheme
Used up the full period?
Transfer to ordinary tax rules
Make sure you get a new ”tax card” (electronical)
Access skat.dk TastSelv menu with NemId Choose Forskudsopgørelse
Or
Call 7222 1818, tax questions in general
Side 17
19. marts 2015
Tax scheme for foreign researchers
Where to find more information
www.skat.dk/researchers
www.skat.dk/forskerordningen
Guide: P nr. 28 (GB) Tax scheme for foreign researchers and key employees and
Application form including information: 01.012 A - Approved Researcher
ONLY questions about the special tax scheme/researcher taxation:
Niels Smedegaard – Telephone 7238 9772
Lene Bernth Fjord – Telephone 7238 5132
www.workindenmark.dk
Side 18
19. marts 2015