What to consider before committing to "the move"?

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dusty_bin
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Post by dusty_bin » Mon Sep 01, 2003 9:58 am

Now I can see why the expat tax exemption is coming to an end. With the current tax rates, it has hardly any benefit. A couple of years ago, it would have made quite a difference.

Folk coming from the US are in quite a bind though, they look to be eligable for double taxation. Us Brits, for example, pay tax in only one place. Here, if appropriate, or Britain, not both.



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Hank W.
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Post by Hank W. » Mon Sep 01, 2003 2:39 pm

There is a tax agreement between Finland and the USA, but one would need to check what exactly it says.

Tax treaty USA-Finland:
http://ftp.fedworld.gov/pub/irs-trty/finland.pdf
Cheers, Hank W.
sitting here like a lemon looking for a gin.


dusty_bin
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Post by dusty_bin » Mon Sep 01, 2003 2:55 pm

This is one I don't need to read...

The USA is one of a very small number of countries that actually uses the principal of double taxation. IIRC the justification is to do with the fact that, as a US citizen, a person still benefits from the existance of the US, no matter where one lives. The approx, 70K allowance is a gesture that the overseas citizen is less expensive than if he/she lived in the USA.

The tax agreement will be about the sharing of information between the two countries and stuff like that. I don't know how FInnish citizens are taxed in the US, I guess that is in there as well.


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Hank W.
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Post by Hank W. » Tue Sep 02, 2003 7:55 am

Yeah, but as you guys don't pay much if any taxes, it is irrelevant. Finnish residents need to be 6 months out of the country to be exempt. OK, if you are some rich guy with gazillion boocoo bucks in assets, then its another story, but I don't care if they get taxed triple.
Cheers, Hank W.
sitting here like a lemon looking for a gin.


dusty_bin
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Post by dusty_bin » Tue Sep 02, 2003 10:40 am

Hank - you gotta real chip!

It is NORMAL to be taxed by your home country on short overseas assignments. Apart from anything else, the administration is a nightmare otherwise.
Oh, if it helps at all, Finnish tax rates are falling, they are higher than the UK, but now by not a huge amount, particularly for a decent income.
What you guys have to come to terms with is the frighteningly low level of wages, although IMHO this is tied into output/man hour worked. I guess work like a yank, earn like a yank might be a decent motto, but with union agreements, closed shops, lack of flexibility on both sides, featherbedding and central negotiations FInland is a while away from being able to recognise the value of the individual worker and his/her output. (in most cases)


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Hank W.
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Post by Hank W. » Tue Sep 02, 2003 5:14 pm

Oh no, short term overseas jobs are a nightmare *especially* with administration. I am not sure what the current term used in the UK is, but "daily allowance" or "päiväraha" comes to mind. I know Finnish workers on a shoert "gig" overseas net like croesus as it is tax free. With certain end conditions... It is done in other countries too - I was working in a hotel with many German businessmen visiting. We had to retype every !"#¤!£€$€ automated hotell bill because they wanted it "ohne frühstück". We said it is a part of the package you eat it or not but the German businessmen were climbing on the walls, as apparently the two salty herrings and dried porridge in Germany consists as a meal and they were docked for "a meal" by their employer unless we typed the ZIMMER OHNE FRÜHSTÜCK and stamped it in triplicate to please the @£$€!"#¤%accountants.... So it was "ohne frühstück" for a 'good morning' every damn morning 6.30 o'clock when everyone was checking out... :evil:
Cheers, Hank W.
sitting here like a lemon looking for a gin.


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