Secondments to and within Europe - Ius Laboris

Secondments to and within Europe
Tax aspects
SPECIAL REGIME
SHORT DESCRIPTION
SPECIAL REGIME
SHORT DESCRIPTION
GREECE GERMANY
FRANCE
FINLAND
Yes.
No.
No.
Key personnel are also exempt from the
employee's health insurance contribution.
These key employees must have a
minimum monthly salary of EUR 5,800
during the whole period of employment
and their working period in Finland must
last more than six months. The minimum
salary requirement does not apply to
university teachers and researchers.
French tax residents who engage in
frequent business travel may benefit from
a personal income tax exemption
(expatriation or ‘travel’ premium). This
premium is an additional salary, paid to
compensate the employee because he or
she is away from home for long periods
of time. To benefit from the personal
income tax exemption, the premium
must be provided for in the employment
contract or an addendum to such
contract, and must be strictly proportional
to the time spent abroad by the employee.
According to French case law, the
amount of the premium should not
exceed, as an absolute maximum, 30%
of annual gross salary. The premium is
subject to social security contributions.
N/A.
Expatriates are subject to the same rules
as Greek employees.
Yes.
Yes.
In respect of employment earnings,
where a person is resident in Ireland for a
tax year and was not resident in the
preceding year, and can demonstrate that
he or she is in Ireland with the intention
of residing there and that he or she will
be resident for the following year, he or
she will be deemed to be resident for
that year only from the date of arrival.
There are similar rules for the year of
departure whereby the person will be
considered resident up to the date of
departure if the person can demonstrate
that he or she is leaving Ireland other
than for a temporary purpose with the
intention of leaving, and in such
circumstances that he or she will not be
resident for the following year, he or she
will be regarded as resident up to the
date of departure.
Where the person is treated as resident
for part of the year, the employment
income that arises will be treated as
income arising for a year in which he or
she is resident. Income arising in the
remaining part of the year will be treated
as arising in a year in which the person is
not resident.
Income from employment produced by
an Italian tax resident employed by Italian
companies working abroad on a
continuous and exclusive basis for more
than 183 days in a 12-month period is
subject to Italian personal income tax.
The taxable base, however, is restricted
to notional compensation that is
determined by taking into account the
employee’s level, the sector of activity
and the base compensation prior to the
foreign assignment, and is capped
without regard to the actual income
received by the employee. The cap is set
each year by a Decree of the Italian
Ministers of Labour, Treasury and Finance.
IRELAND ITALY
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