Pradeep Eranti
Fernanda Bajanca
Pradeep Eranti
Lidia Natalia Trusilewicz
Call for Working Group on Taxation of Mobility Allowances
Hello All,
After many discussions which we had about taxation of mobility allowances, I am happy to inform you on two positive developments:
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The policy paper on Support to Marie Sklodowska-Curie (MSC) Fellows in Matters Related to the Taxation of Mobility Allowances was presented to the Policy on Successful Researchers Working Group three weeks ago.
I presented this policy in order to open the door for solutions. It identifies several steps on how to approach this complex matter in the initial phase, which ultimately should lead to the improvement of the situation. It includes identification and promotion of good practice and legal solutions, but also cooperation with relevant stakeholders in organised way, establishing of dedicated working group and cooperation with chapters.
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The Working Group on Taxation of Mobility Allowances is to be established soon to work on relevant matters and make progress for the benefit of our members. This means that some funding will be also available to support the efforts. You can find below the link to the call: https://www.mariecuriealumni.eu/working-groups-call
As I remember that we had live discussion on this matter, I do hope that there will be many members interested to work on the establishment of this group. Do not be shy to express your interest and join the efforts! We provided initial support and now is your turn to cooperate and work toward success!
Best wishes,
Snezana
3 Comments
Hi,
Another input to your working group. In France, it is illegal to tax Marie Curie mobility allowances, but only in the private sector! (see http://bofip.impots.gouv.fr/bofip/5515-PGP). As I'm employed by a public organisation (like 99% of the Marie Curie Fellows), my mobility allowances is taxed then. This makes no sense, as people employed by the public system are usually considered as civil servants, meaning that they have here a (life-long) permanent job but a lower net salary. Marie Curie Fellows, on the other hand, have to undergo the public system financials rules, without the compensation of having a permanent job! It is a very dodgy situation.
Hello Anne,
sorry but in France the mobility allowances is taxed. It is only exempt from the "impôts sur le revenu" (which is another thing). So you have to inform your HR department that will correct your "revenu net imposable" that you should receive by post one a year by your HR department. You will then pay a reduced ammount concerning only the "impôts sur le revenu". But concerning your monhtly salary (living+mobility) this it's still taxed.
Regards,
Andrea
Just as an input for the working group: In Sweden (where my home institution is) it should be possible to get the Mobility Allowance untaxed (by handing in receipts for actual costs) if the fellow is employed through a so-called URA contract (URA avtal), a special contract for government employees working abroad (see http://www.arbetsgivarverket.se/medlem/personal-utomlands/utlandsstationering-med-ura/). This contract allows the employer (i.e. a government agency, such as a university) to grant various tax free benefits to the employee, including refunds for rent, school-fees, moving costs, and even a compensation for lost income of an accompanying spouse. How much of and which of these costs will be refunded against receipts is a matter of negotiation between employer and employee.
However, I have nevertheless not managed to get my mobility allowance untaxed. It is paid as a fully taxable part of my salary. I don't fully understand why this is so, but I think it is out of fear of the EU auditors who might complain about paying the mobility allowance not as part of the salary but only as a reibursement of actually incurred costs. I don't believe that that the EU would complain about this and neither will the reimbursement thing be a problem in practice. I have no problem producing refundable receipts way beyond the amount of the mobility allowance.
I have written to the ERA (Alessandra Luchetti) in order to get an official confirmation from them so that I can show my employer that the EU will not complain if they pay the mobility allowance as a tax free benefit. But I have not received an answer.
I would appreciate any hints as to who might be able and willing to provide such a confirmation. With the insanely strong dollar, I could certainly use the extra buck from the mobility allowance...
Cheers,
Christoph