The taxes you can pay
The personal tax stucture in the USA consists of several types of taxes. The major tax is the Federal Tax. The federal tax is levied on all income earned by any individual working in the USA. The federal tax rate depends on the
earned wage and can reach up to 25%. Participants in the J-1 work and travel programs are usually paying 10-15% Federal Income Tax.
State Income Tax is levied on all income earned by any individual working in the USA except in the following states:Alaska, Florida, Nevada, New Hampshire,
South Dakota, Texas, Washington and Wyoming. The rate of the state tax depends on the given state and can reach up to 15%. Some states also apply a different system of tax allowances and therefore it can happen that a different
portion of the federal and state tax can be refunded.
Local Tax levied on personal income is used in some cities or counties. This tax usually does not exceed 3% of the income. In the majority of cases, this tax will not be levied on your income. The process
of refunding local taxes is complicated and in some cases not possible at all.
Social Security and Medicare Taxes can be deducted from your wage in some cases. These taxes need to be deducted from all US residents, as well as from all H2B visa participants and individuals treated like residents (for instance students on J-1 programs lasting more than 183 days). Participants in J-1 work and travel programs do not pay Social Security or Medicare tax. If your employer
deducts these taxes from your wage, ask your employer to correct this mistake. The process of refunding Medicare and Social Security tax is longer and generally more problematic. You need to have your DS-2019 form, the exact name, address and phone number of your employer and if possible also the W-2 form from your employer.
Frequently Asked Questions
What is a Form W2?
Form W2 is the annual statement summary which you receive from your employer in the end of the tax year. It shows the total amount you earned from your employer and the amount of tax your employer paid to the tax office from your earnings.
What is Social Security number?
Social Security number (SSN) is a nine-digit number issued to U.S. citizens, permanent residents, and temporary (working) residents. Its primary purpose is to track individuals for taxation purposes.
How many years back can I apply for a tax refund?
You can apply for tax refund 4 years back
How long does it take to get the refund?
In average 8-12 weeks from the time your documents are sent to the Tax Authorities,
depends on the time processing in the Revenue.
Tax Information for Great Britain
Tax refund for income from UK.
The tax system in England insists on tax advance payment from each person receiving
salary in UK and after the work is finished or at the end of financial year
he can apply for tax refund.
It is possible to apply for the refund up to 6 years backwards. However if
the financial authorities assess back taxes, then the penalty for late application
is applicable together with the interest on the amount.
Your employer can deduct the following taxes
- Income tax in the amount of 10%, 22%, 40%
- National Insurance tax in the amount of 11%
As most employees work in UK only during a part of the financial year, they
receive refund of 500EUR in average!!!
However it is not possible to refund the medical and social taxes. On the other
side the length of working period in UK is counted to your retirement pension.
During your stay in UK is necessary:
- to register at HOME OFFICE
- to apply for National Insurance Number.
Frequently Asked Questions
What is a Form P45?
Form P45 is the form you receive from your employer when you leave an employment.
You may need it for the following:
Claiming a refund of tax during unemployment,
Claiming Social Welfare Benefits,
To give to your new employer to avoid paying emergency tax.
What is a Form P60?
Form P60 is the form issued by an employer to an employee certifying details
of an employee's Pay, Tax and PRSI contributions for the tax year. The form
must be issued to all employees in employment on 31st December.
What is National Insurance Number?
The National Insurance Number number is stated on the P45 or P60 form on
the top of the form, its identifying the taxpayer.
What is National Insurance Tax?
This is retirement insurance. For EU countries it is not refundable
How long does it take to get the refund?
In average 2-3 months from the time your documents are sent to the Tax Authorities,
depends on the time processing in the Revenue.
Tax refund for income from Germany
The German tax system has undergone a comprehensive reform in the year 2001.
This reform applies to taxation in the years 2001 - 2005 and is intended, in
principle, to ease the actual rate of tax for both individuals and companies.
Taxation of an individual\\\'s income is progressive. In other words, the higher
the income, the higher the rate of tax payable. In 2005 the Germany tax rates
for an individual are 15% - 42%.
An individual is liable for tax on his income as an employee and on income
as a self-employed person.
An individual who meets the test of a \\\"permanent resident\\\" of Germany
will have the tax calculated on his income in Germany and from overseas.
A foreign resident who is employed in Germany pays tax only on income earned
in Germany.
An employer is obligated to deduct the tax payable, income tax and social security
immediately on a monthly basis from income earned as a wage.
Frequently Asked Questions
What taxes can be refunded and how long does it take?
Income Tax: from 2 to 4 months
What is Lohnsteuerbeshenigung?
Lohnsteuerbeshenigung/ LBS/ is summarization of earnings and taxes of
employee issued by the employer. The Original LBS doesnt need to be enclosed
to the tax return unless the employer transmits the data to the tax office electronically.
The Lohnsteuerbeshenigung is issued by the employer in the end of the employment
or in the end of the TAX year.
What should I do if I dont have Lohnsteuerbeshenigung LBS?
a) You have to contact the employer; he is obliged to issue a replacement
b) ETS can obtain the documents from the employer if you pay for Replacement
service
What is it the Bescheid?
This is actually the final decision about refund/tax due of the client. It is
sent to the clients permanent address.
Is it possible to refund Sozial and Renten versicherung tax (health
and social insurance)?
No. Unfortunately it is not possible to be refunded.
How many years back can I claim tax refund?
You can claim tax refund in Germany only two years back. It means that till
the end of the year 2009 (till 31.12.2009); we can send to the tax offices
in Germany the tax returns for the years 2007 and 2008.
Tax refund for income from Malta.
Individuals who are ordinarily resident and domiciled in Malta are subject to income tax in Malta on their worldwide income and on certain capital gains.
Employees pay tax under the Final Settlement System, which provides for the payment of tax on employment income and on pensions by means of deductions from emoluments. The deductions are remitted to the Inland Revenue Department by the employer.
Individuals who are either:
not ordinarily resident in Malta OR
not domiciled in Malta
are subject to Maltese income tax:
on their income arising in Malta and
on their foreign income remitted or received in Malta.
As a general rule, an individual has to spend a total of 183 days in Malta during a calendar year to be considered resident in Malta.
In Malta you are obliged to pay the following types of taxes:
1.Income tax: Tax on personal earnings (wages from employment or self-employment), capital gains, and business income.
The tax rates applicable for taxpayers residing in Malta for 2005 and 2006 vary from 15 to 35 % of the gross income.
A resident individual having income from part-time work is taxed at the fixed rate of 15%.
For non-residents the tax rates vary from 20 to 35 % of the gross income.
2.Social Security Taxes:
Employers and employees make social security contributions in Malta on a graduated scale:
at the maximum weekly pay of Lm 129.78 the employee and employer each pay 10% (Lm 12.98).
The employer deducts the social security contribution along with income tax.
The self-employed also make contributions.
We advise you to register on the ETS web site for Tax Support Service www.ETSrefunds.org
ETS Company will inform you about the regulations changes or any other changes
by email or SMS.
Frequently Asked Questions
What is a Form FS3?
Form FS3 is the the final summarization of wages and taxes during the year.
You receive it from your employer in the end of the tax year.
What is Payee's IDcard/IT reg Number?
The Payee's IDcard/IT reg Number is issued to the taxpayer by the TAX office after he registers in the TAXoffice.
The Payee's IDcard/IT reg Number is 10 digits number
How many years back can I apply for a tax refund?
You can apply for tax refund 6 years back
How long does it take to get the refund?
In average 2-3 months from the time your documents are sent to the Tax Authorities,
depends on the time processing in the Revenue.
Tax refund for income from Italy.
An individual is liable for tax on his income as an employee and on income as a self-employed person. Tax will be payable on income earned in Italy and overseas by an individual who meets the test of a "permanent resident" of Italy. A foreign resident who is employed in Italy pays tax only on income earned in Italy.
The tax year in Italy ends on December 31st.
Advance payments of tax are made on the following basis:
An Individual - An individual whose only income is from a salary is not obligated to file an annual tax return. His employer deducts tax from the employee and transfers the payment immediately to the tax authorities on a monthly basis.
A Self-Employed Individual is obliged to pay 100% of the tax forecast for a year, or an amount that is the equivalent of 98% of the tax paid in the previous year, whichever is the lower, The pre-payment is made in two installments. 40% of the total is paid by June 20th and the remaining 60% is paid on November 30.
There are 3 types of direct taxes in Italy:
IRES (Company income tax) is applied on income produced by companies. The rate is 33% and is applied to taxable income, which is determined by applying increases and reductions to profit in the accounts, according to tax purposes.
IRE (Personal income tax) is applied to natural person resident in Italy for all income produced and to natural persons not resident in Italy for income produced in the State.
The rates are:
-Up to 26.000 23%.
-From 26.000 to 33.500 33%.
-From 33.500 to 100.000 39% + 4%.
IRAP (Regional tax on production activities ) The regional tax is calculated on production activities, in proportion of the employees working in the various establishments. Is a local tax collected by the region where the activities are conduced. The rate is not more then 4.50%.
Taxation of Employees.
As regards employed persons, the employer is obligated to deduct tax at source from an employee and to make additional contributions to social security.
Social Security:
-An employed person - the employer's contribution is between 30% - 37% of the salary and the employee's contribution is usually 9% of the salary.
-A self-employed person - the rate of payment is between 10% - 13%, with an upper limit that changes from year to year.
A foreign resident - if he is self-employed in Italy, the rate of payment is 13%.
Frequently Asked Questions
What is Codice Fiscale?
Everybody, whether Italian or foreign, who takes part in financial transactions in the country needs a tax identification number or codice fiscale. Youll become taxable as residents once you do 183 days work (more than half the year) in Italy
What is CUD?
The CUD form is issued and send by the employer to the employee latest until 15 March of the following year or maximum 12 days after finishing the employment. It proofs the amount of earnings and paid taxes in the relevant year by each employee.
What is the deadline for filing the taxes?
The date for filing an annual return for an individual is July 31. Fines are imposed for arrears in filing an annual return at the rate of 120% - 240% of the tax, depending on the length of time that the return is in arrears.
What taxes can be refunded and how long does it take?
Income tax: 2-3 months after the tax documents have been received in the tax authority
How many years back can I apply for a tax refund?
You can apply for a tax refund 2 years back.
Tax Information for Australia
Tax refund for income from Australia.
Everyone who is working in Australia is obliged to pay income tax.
At the end of the Australian tax year (30 June) you will need to complete a tax return.
It is possible to apply for the refund up to 5 years backwards.
Your employer can deduct the following taxes
- Income tax in the amount of 29% or 47%
- Superannuation tax in the amount of 9% or more
The amount of the taxes you pay depends on:
- How much you earn
- Whether you have a Tax file number and give it to your employer
- Whether you are a resident for tax purposes
As most employees work in Australia only during a part of the financial year, they receive an average refund of 600 AU$!!!
What to do before departure to Australia?
- make sure you have permission to work from the Department of Immigration and Citizenship
During your stay in Australia it is necessary:
- to apply for Tax File number
Frequently Asked Questions
What is a Form PAYG?
Form PAYG is the annual statement summary which you receive from your employer in the end of the tax year. It shows the total amount you earned from your employer and the amount of tax your employer paid to the tax office from your earnings.
What is Tax File Number?
A Tax File number is your unique reference number in the Australian Tax system. We recommend you apply for a TFN to avoid being taxed automatically at the highest rate.
Tax File Number (TFN) is an 8 or 9 digit number.
How many years back can I apply for a tax refund?
You can apply for tax refund 5 years back
How long does it take to get the refund?
In average 8-12 weeks from the time your documents are sent to the Tax Authorities,
depends on the time processing in the Revenue.
Tax refund for income for Belgium.
All employees and self-employed individuals working in Belgium pay 20-50% income tax on their earnings. The rate you are taxed at depends on how much you earn. All resident taxpayers or non-residents who work more than 183 days in the tax year in Belgium are required to file a tax return. We recommend that you should file a tax return to make sure your tax affairs are in order in case you want to return to Belgium to work.
Frequently asked questions
What is form Loonfiche 281.10/Fiche de Remuneration?
Form Loonfiche 281.10/Fiche de Remuneration is the annual statement summary which you receive from your employer in the end of the tax year. It shows the total amount you earned from your employer and the amount of tax your employer paid to the tax office from your earnings.
How many years back can I apply for a tax refund?
You can apply for a refund 2 years back.
How long does it take to get the refund?
In average 8-12 weeks from the time your documents are sent to the Tax Authorities, depends on the time processing in the Revenue.
Tax refund for income for Czech Republic.
All employed and self-employed individuals working in Czech Republic pay 10-15% income tax on their earnings and they have the right to get their taxes back.
Make sure when you leave Czech Republic that you have received from your employer/s your Potvrzeni forms.
Frequently asked questions
What is form Potvrzeni?
Potvrzeni is the annual statement summary which you receive from your employer in the end of the tax year. It shows the total amount you earned from your employer and the amount of tax your employer paid to the tax office from your earnings.
How many years back can I apply for a tax refund?
You can apply for tax refund 3 years back.
How long does it take to get the refund?
In average 1-2 months from the time your documents are sent to the Tax Authorities, depends on the time processing in the Revenue. .
Tax refund for income for Iceland.
Iceland citizens and residents pay between 20% and 35% income tax and between 3% and 8% Life insurance tax.
Frequently asked questions
What is Launamidi form?
Form Launamidi is the annual statement summary which you receive from your employer in the end of the tax year. It shows the total amount you earned from your employer and the amount of tax your employer paid to the tax office from your earnings.
How many years back can I apply for a tax refund?
ThYou can apply for tax refund 4 years back.
How long does it take to get the refund?
In average 4-5 months from the time your documents are sent to the Tax Authorities,
depends on the time processing in the Revenue.
.
Tax refund for income for Luxemburg.
All employees and self-employed persons working in Luxembourg pay 10-15% income tax on their earnings and hey have the right to get their taxes back.
Frequently asked questions
What is Certificat de Remuneration/Certificat de Salaire ou de Pension?
Certificat de Remuneration/Certificat de Salaire ou de Pension is the annual statement summary which you receive from your employer in the end of the tax year. It shows the total amount you earned from your employer and the amount of tax your employer paid to the tax office from your earnings.
How many years back can I apply for a tax refund?
You can apply for tax refund only 1 year back.
How long will it take to receive my Luxembourg tax refund?
In average 8-12 weeks from the time your documents are sent to the Tax Authorities, depends on the time processing in the Revenue.
Tax refund for income for Netherlands.
All employees and self-employed persons who receive income from the Netherlands pay 20-40% tax on their earnings.
Frequently asked questions
What is Jaaropgaaf form?
Form Jaaropgaaf is the annual statement summary which you receive from your employer in the end of the tax year. It shows the total amount you earned from your employer and the amount of tax your employer paid to the tax office from your earnings.
How many years back can I apply for a tax refund?
You can apply for tax refund 5 years back.
How long does it take to get the refund?
In average 8-12 weeks from the time your documents are sent to the Tax Authorities, depends on the time processing in the Revenue.
Tax refund for income for New Zealand.
Individuals working in New Zealand as employees or self-employed persons pay 20-33% income tax on their earnings.
Frequently asked questions
What is Summary of Earnings?
Summary of Earnings is the annual statement summary which you receive from your employer in the end of the tax year. It shows the total amount you earned from your employer and the amount of tax your employer paid to the tax office from your earnings.
How many years back can I apply for a tax refund?
You can apply for tax refund 8 years back.
How long does it take to get the refund?
In average 4-5 months from the time your documents are sent to the Tax Authorities, depends on the time processing in the Revenue .
