Mostrando entradas de marzo, 2014

If I were an Expat (6/10): Taxes

Benjamin Franklin said  "Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes ."   Attributed to Einstein, " The hardest thing in the world to understand is the income tax " If understanding taxes is difficult, understanding taxes simultaneously in two different countries is even worse. T here is no supranational authority that  effectively coordinates the definition of tax policies internationally and that is somethig we find out when we become an Expat. Let's start with an example, the tax year is different in many countries:   • Spain: January to December • Australia: July to June • UK: April to April   The beginning and the end of assignments can occur at any time of the year and depending on the day you start or end your expatriation, you will have a different tax treatment.   Let me start by with some basic concepts: