Tax rate PhD student

FilippoX · Post by **FilippoX** » Sun Sep 28, 2014 2:30 am

Hello everyone, I'm a EU PhD student,
last week I got my finnish identity number and my finnish tax number quite smoothly, however, I'm not able to understand how much money my university will withold from my salary. I got a paper from the agency (INTO finland) that calculated my tax rate according to my gross annual income, maybe u guys got the same piece of paper. Anyway it says the total tax and charges taken from my salary is 2%, it seems too low...I mean, I always read on internet that tax rate is like 20% or something. Do you have any idea about that? if anybody got the same kind of paper from the same agency please let me know how to read it.

Thanks

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betelgeuse · Post by **betelgeuse** » Sun Sep 28, 2014 10:58 am

FilippoX wrote:Anyway it says the total tax and charges taken from my salary is 2%, it seems too low...I mean, I always read on internet that tax rate is like 20% or something. Do you have any idea about that? if anybody got the same kind of paper from the same agency please let me know how to read it.

https://www.vero.fi/en-US/Precise_infor ... _fo(21275)

Your taxation for this year is probably based on limited liability (rajoitettu verovelvollisuus) with the main taxation country being your country of origin. The tax year in Finland is the calendar year. This means your income for the tax year is limited and progressive taxation means the percentage is very low. This would also be the case if you have unlimited liability and no-income yet during this year. In 2015 the tax will be about what you expect. If you have limited liability, be sure to report the income to your country of origin and they might be taxing the different between the local rate and the taxes already paid in Finland. An estimator for taxes can be found here:

http://prosentti.vero.fi/VPL2014/Sivut/ ... ieli=en-US

Pursuivant · Post by **Pursuivant** » Sun Sep 28, 2014 11:06 am

The thing is, the tax office then next year automatically bases the new tax% on "previous years earnings" and as your earnings are like 2 months salary, thats what the paper is going to say. So you will need to give them a call and say your earnings for the year =12 months worth of salary and then you'll have a correct %.

betelgeuse · Post by **betelgeuse** » Sun Sep 28, 2014 4:36 pm

Pursuivant wrote:The thing is, the tax office then next year automatically bases the new tax% on "previous years earnings" and as your earnings are like 2 months salary, thats what the paper is going to say. So you will need to give them a call and say your earnings for the year =12 months worth of salary and then you'll have a correct %.

Actually the earnings from 2014 are used for the taxation of 2016. For 2015 they would probably use the information reported when applying for the tax card.

FilippoX · Post by **FilippoX** » Sun Sep 28, 2014 5:27 pm

Thanks a lot guys, so as far as I understood the tax rate is based on the annual income (then 2% rate makes sense since I started working in september).

My second question is: how do I get the new tax card for the whole 2015? do I receive it automatically by post mail?

last question: my monthly salary is around 2.4k euro/month, what's the tax rate I might expect for next year? I used the tax calculator and I got something like 17%, but I don't trust it that much cuz I tried to use it for my current tax rate and I got 1% instead of 2.

Thank you all ^^

Rosamunda · Post by **Rosamunda** » Sun Sep 28, 2014 11:28 pm

Btw. If you are French you don't have to pay tax. Go to salutfinlande.net and ask for more info on there.

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