Working part time and tax

soo yee · Post by **soo yee** » Mon Jul 07, 2014 6:51 pm

Hi,

I am currently working full time for a Dutch company based in Malaysia. However, this autumn I will be studying my master full time and there is a possibility for me to continue working with them. The plan is to terminate my full time contract in Malaysia and will be offered a part time contract with with them from the Netherlands's entity. I read from the migri website that i am allowed to work maximum 25 hours per week (i will be working remotely from Finland). I would like to know whether do i have to pay taxes for Netherlands and Finland both? Thank you in advance.

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Upphew · Post by **Upphew** » Mon Jul 07, 2014 7:57 pm

soo yee wrote:Hi,

I am currently working full time for a Dutch company based in Malaysia. However, this autumn I will be studying my master full time and there is a possibility for me to continue working with them. The plan is to terminate my full time contract in Malaysia and will be offered a part time contract with with them from the Netherlands's entity. I read from the migri website that i am allowed to work maximum 25 hours per week (i will be working remotely from Finland). I would like to know whether do i have to pay taxes for Netherlands and Finland both? Thank you in advance.

You are living in Finland so I'd guess you get taxed here too. Or you get taxed NL and get credit for those taxes and most likely pay some more here (it is quite a safe bet that we have higher tax% than dutch have).
I'd pay it safe and give em a call: http://tax.fi/en-US/Tax_Administration/ ... nformation

Rip · Post by **Rip** » Tue Jul 08, 2014 2:18 am

Upphew wrote: You are living in Finland

Not yet, I think. I'd ask too from the tax office; I think the answer may well be different regarding 2014 (staying in Finland less than 6 months) and 2015. Unfortunately the Finnish tax office most likely won't answer anything regarding Dutch taxation, so you should probably ask directly from Dutch authorities as well.

soo yee · Post by **soo yee** » Tue Jul 08, 2014 4:51 am

Hi,

Thank you for the replies. I read from this website (below) where it stated:

Some of the tax treaties include for students special exemptions in the country where the work is done. You can usually get an exemption in Finland only if your work in Finland is directly related to your studies in your home country. For a tax-treaty exemption it is additionally required that you (immediately before arrival in Finland) really lived in the country that has made the tax treaty with Finland.

.

http://www.vero.fi/en-US/Individuals/Ar ... 2817157%29

Based on my current situation, my tax exemption would be between Finland and Malaysia -> Malaysia: Pay is tax-exempt if it does not exceed U.S. $2,500 per calendar year.

Rip · Post by **Rip** » Tue Jul 08, 2014 3:21 pm

"Directly related" I think means "is as mandatory training period part of the studies"

Edit: "Mandatory" is perhaps bit too strong. Training that you get credited by your institution, even if not strictly part of degree requirements should do as well.

soo yee · Post by **soo yee** » Tue Jul 08, 2014 6:40 pm

Thank you for the reply.
The situation seem to be more trickier as my work does not relate to my study but i will check it out with the Finnish Tax Agency. Anyway, is it advisable to declare or inform my part time job when i arrive in Finland?

betelgeuse · Post by **betelgeuse** » Tue Jul 08, 2014 9:51 pm

soo yee wrote:Thank you for the reply.
The situation seem to be more trickier as my work does not relate to my study but i will check it out with the Finnish Tax Agency. Anyway, is it advisable to declare or inform my part time job when i arrive in Finland?

Besides paying taxes you need to make sure that someone takes care of the employer obligations like pension payments. I doubt your employer is willing to do this so it will most likely fall on you to make sure they are handled. This means you will have to arrange things when you arrive.

soo yee · Post by **soo yee** » Wed Jul 09, 2014 4:20 am

Hi,

Even working as part time, there will still be obligations for pension payments? I thought it is only applicable for the full time employment.

betelgeuse · Post by **betelgeuse** » Wed Jul 09, 2014 4:51 am

soo yee wrote:Hi,

Even working as part time, there will still be obligations for pension payments? I thought it is only applicable for the full time employment.

Yes if you make more than 41,89 euros a month (virtual certainty):

http://www.finlex.fi/fi/laki/ajantasa/2 ... 95#L10P141

Check out the following article:

https://www.vero.fi/en-US/Precise_infor ... yer(14404)

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