Taxation update

Dear All

The taxation topic expecially mobility is hot debate for few years now and the Commision is already aware of it. Last week, I attended European Commsion Euraxess meeting (The International Dimension of Research and Mobility Programmes), Zaragoza, Spain where I was invited for the panel discussion.

It was made very clear by Commsion that the Commsion give salary according to their guidelines in which they say mobility is tax free. It is to streamline all european countries (eastern or western) with correction factor. Once, the money reach the university, national rules will apply and EC salary rule cant be considered except that the contract should be work permit. EC guidelines is only for universities to release equal money to each university by EC according to the correction factor.

According to national laws, which differ country to country, the money that is given to researcher as salary is gross amount and has to be on the pay slip, therefore, its taxable. The contract that is signed by researcher represents gross salary that includes living + mobility allowance. Once this contract is signed, the whole gross salary will be taxed. there is no other legal way of putting mobility allowance separately. So, dont think of EC rules for your salary but your national taxation laws of country with Gross amount that is written on contract. The EC salary rules are for universities to calculate the gross salary of researcher which has to be written correctly in contract of each fellow.