Syddansk Universitet PhD.- scholarship – studying abroad

1. Fredag den 29. februar 2008 Lene Bøgetoft Hansen, Skattecenter Odense Syddansk UniversitetPhD.- scholarship – studying abroad

2. Information SKAT Telephone no.: 72 22 18 18 Web side:www.skat.dk Contents among other things: ”Tast Selv Borger” – and your ”skattemappe”, in which you can: - change your provisional tax assessment - report your tax return - look at your wage slips - look at your yearly statement - calculate your taxes

3. Program Conditions of employment Conditions of employment/funding Institutions abroad Grant TAX Tax liability Agreements for the avoidance of double taxation Tax rebate – ligningslovens § 33A Grants Allowances Pamphlets Questions Binding Answers

4. Employment / Funding Employment Funding

5. Conditions of employment/funding 4+4 system SU – until you graduate as a candidate Salary for tasks 280 hours in the SU financed period Hereafter appointment as paid PhD.- scholar at the education institution 5+3 system Appointment as paid PhD. - scholar at the education institution Vocational - PhD Appointment at a company including expected stay at the education institution about half the time

6. Institutions abroad 2 possibilities Enrolled at an institution abroad through the whole PhD education - The salary is fixed under the premises that the salary is tax free in Denmark (Ligningslovens § 33A)‏ Anyone else - until 12 months abroad

7. Grants For instance: Grants from the education institution for travelling, insurance and board and lodging, travelling and insurance covered by bill board and lodging covered by max standard rates i.e. For instance establishment grants and monthly grants Grants from your company for travelling, insurance and board and lodging Travelling and insurance covered by bill Lodging covered by bill – maybe maximized Board by standard rates - tax free allowance Lodging by standard rates – tax free allowance Foundation grants with the proviso that the grant is used for studying abroad with no proviso of studying abroad,

8. SKAT SKAT SKAT SKAT SKAT SKAT SKAT SKAT

9. Full tax liability – while staying abroad Includes among others: Persons, who has disposal of a home in Denmark – i.e. a room, an apartment or a house In connection with tax liability ”home in Denmark” is considered kept unless there has been given notice to quit the home, or the home is sold or the home is hired out with security of tenure for at least 3 years. Danish citizens, sent abroad by the Danish State or local authorities including spouse and children under 18 years, if they are Danish citizens

10. .... Full tax liability – while staying abroad Results in: Taxation of the global income, that means all income is taxable in Denmark whether the income comes from Denmark or from abroad PhD.- scholarships – who?: Everybody – who keeps a home in Denmark while abroad - whether they are Danish citizens or not. Every Danish citizen, who is appointed by public institutions

11. Limited tax liability Includes among others: Persons, who have income from Danish sources (as mentioned in Kildeskatteloves § 2) For instance: Salary for work carried out in Denmark, SU (study grant from the state education fund), grants for PhD. – scholarships travelling expenses, grants for students according to ”universitetsloven”, grants for foreign students, grants from ”Forskningsstyrelsen” etc PhD. scholarships - who: Among others: Everybody, who receives SU, even though they have given up their home in Denmark when moving abroad Everybody, who receives taxable grants from ”Forskningsstyrelsen”, even though they have given up their home in Denmark when moving abroad

12. Agreements for the avoidance of double taxation When taxable in more than one country Double taxation is normally solved through agreements for the avoidance of double taxation

13. …. Agreements for the avoidance of double taxation PhD. - scholarships Denmark is normally entitled to tax salaries from public institutions Denmark is normally entitled to tax SU The right to tax salary from private companies will depend on the period of staying abroad and if there is a home kept in Denmark while staying abroad If there is no home kept in Denmark, Denmark is not entitled to tax salaries from private companies If a home is kept in Denmark and the study state is entitled to tax the income, Denmark must reduce the Danish taxes. A special tax return concerning foreign income must be filled in an returned to SKAT together with documentation for the paid foreign taxes.

14. Ligningslovens § 33A – reduction in tax - SU Ph.d.- scholarships - SU Not covered by Ligningslovens § 33A

15. Ligningslovens § 33A – reduction in tax – public servants PhD.- scholarships – appointed by public institutions Conditions: Enrolled at an institution abroad through the whole PhD education Liable to full tax in Denmark Staying abroad for at least 6 months Stays in Denmark on holyday or the like must not exceed 42 days (including days of arrival and days of departure) within any period of 6 months. Holydays in Denmark at the end of the period abroad can not be included in in the 6 months period. The Scholar must not receive tax free travelling allowances according to ligningslovens § 7 nr. 15 or 9A

16. …Ligningslovens § 33A – reduction in tax - public servants Reduction calculation: Reduction is given with the proportional amount of Danish tax, which concerns the salary earned abroad

17. Ligningslovens § 33A – reduction in tax - private employees Ph.d.- scholarships – appointed by private companies Conditions: Liable to full tax in Denmark Staying abroad for at least 6 months Stays in Denmark on holyday or the like must not exceed 42 days (including days of arrival and days of departure) within any period of 6 months. Holydays in Denmark at the end of the period abroad can not be included in in the 6 months period.

18. ... Ligningslovens § 33A – reduction in tax – private employees Reduction calculation: Reduction is given with the proportional amount of Danish tax, which concerns the salary earned abroad If Denmark is entitled to tax the income according to an agreement forthe avoidance of double taxation – reduction is given with only half the proportional amount of Danish tax, which concerns the salary earnedabroad. Normally Denmark is entitled to tax the income, when the stay in the study state does not exceed 183 days within a 12 month’s period, 183 dayswithin a calendar year or the like (one must check the relevant agreement).

19. Usefull information – ligningslovens § 33A – public servants PhD. scholarships – enrolled at an institution abroad for the whole PhD. education – conditions according to ligningslovens § 33A are fulfilled Exemption for tax deduction can be issued: on the basis of: Contract of employment, from which it appears: that you are covered by and paid according to the agreement concerning PhD. scholarships, who are enrolled at an institution abroad for the whole PhD. education which institution abroad you are enrolled the period of staying abroad plus statement from the Danish institution, that the institution do not pay tax free allowances according to ligningslovens § 7 nr. 15 or 9A

20. …. Usefull information - ligningslovens § 33A – public servant Application: Local tax centre Tax return: A special tax return concerning foreign income must be filled in

21. Usefull information – ligningslovens § 33A – private employees PhD – scholarships – appointed by private companies – the conditions in Ligningslovens § 33A is fulfilled Denmark is entitled to tax Your tax card can be changed for the purpose of paying ½ tax Change can carried out on the basis of: statement from employer telling period of working abroad and name of working country filled in form concerning provisional tax – you can find the form here http://www.skat.dk/getFile.aspx?Id=26739 Application: Local tax centre Tax return: A special tax return concerning foreign income must be filled in

22. …Usefull information - ligningslovens § 33A – private employees The study state is entitled to tax Exemption for tax deduction can be issued on the basis of: statement from employer telling period of working abroad and name of working country Concerning following countries it is however a condition for getting exemption in advance that there is proof for taxation in the study state Azerbadjan,Belgien, Bulgarien, Canada, Cypern, Den Tjekkiske Republik, Det Forende Kongerige, Estland,Finland, Frankrig, Grækenland, Irland, Island,Italien, Letland,Litauen, Luxembourg, Malta, Nederlandene, Norge, Polen, Portugal, Rumænien, Slovakiet, Slovenien, Spanien, Sverige, Tyskland Ungarn, USA og Østrig

23. Foundation grants (ligningslovens § 7K)‏ Foundation grants is exempted from tax, if the grant is given with the proviso that the grant is used for studying abroad and is used for covering: Documented travelling expenses between Denmark and the study countryIf travelling in your own car or motorbike the rates for deduction for travelling between home an working place can be used. (for 2008 the rates are 0 kr. for the first 24 km., 1,83 kr. for the next 76 km. and 0,92 kr. for every other km. Usual expenses for board and lodging and miner necessaries at the studying place. Calculated either as the documented actual expense or calculated by standard rates. For 2008 the rates are 440 kr. a day for board (limited to 12 months at the same place) and 189 kr. a day for lodging. Payment for classes, participation fees and the like, including courses in the language of the study state. NOTE – It is only the PhD. Scholars expenses which are covered by the tax exemption even though the foundation by setting the amount of the grant has taking into consideration that for instance wife and kids are joining the scholar at the study place. The Scholar will be liable to tax of the part of the grant, which exceeds above mentioned expenses.

24. Deduction for board and lodging Ph.d.-scolarships - SU No deductions

25. …. Deduction for board and lodging Ph.d.- scholarships – home not kept in Denmark while abroad No deduction for board and lodging

26. … Fradrag for kost og logi PhD.- scholarships – home kept in Denmark while abroad Conditions for deduction for board and lodging: you have a home available in Denmark while abroad. The home is not considered available, if the home is hired out the home is lend to somebody You must be sent abroad by your Danish employer The stay abroad has to be temporary The distance between your home in Denmark and your working place abroad must be so long that you can not possibly spend the night at your home in Denmark You must yourselves pay for the expenses for board and lodging

27. …. Deduction for board and lodging The deduction is: The documented actual expenses for board and lodging or Standard rates according to ligningslovens § 9AFor 2008 the rates are 440 kr. a day for board (limited to 12 months at the same place) and 189 kr. a day for lodging. The deduction must be reduced with: Tax free allowances covering board and lodging Tax free study travelling grants covering board and lodging

28. Ph.d. Scholarships – from foreign contries There might be special rules exemption from tax concerning scholars from developing countries special conditions according to agreements for the avoidance of double taxation

29. Pamphlets Hvis du skal studere i udlandet – en tjeklisteContains among other things information about TAX, SU, Health Insurance, Folkeregister, PhD., and various links.http://www.skat.dk/Vejledninger/Personserien/Pnr_56_ver1.pdf Skatten – når du flytter til udlandetContains information about tax liability, social security, agreements for the avoidance of double taxation http://www.skat.dk/SKAT.aspx?oId=119277&vId=200883 Skatten – ved arbejde i udlandetContains among other things information about allowances, tax exemptions and tax deduction. http://www.skat.dk/SKAT.aspx?oId=119277&vId=200883

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31. Binding answers If you have doubts about the fiscal consequences for a given disposition you have the possibility to ask SKAT for a binding answer. The fee for a binding answer is 300 D.kr. each disposition. You can ask for a binding answer through our website www.skat.dk The guidance for binding answers is available herehttp://www.skat.dk/SKAT.aspx?oID=359960&chk=201511#pos