When working in a foreign country you will pay tax on your earnings just as you would in your home country. Tax rates vary from country to country and the amount you pay will depend on how much you earn.
In the UK, tax rates are currently 20% on earnings above £1830 and 40% on earnings over £36,401. Individuals working in Austria as employees pay between 10% and 15% income tax (Einkommensteuer) on their earnings. All employees and self-employed persons working in Belgium pay 25-50% income tax on their earnings. For Denmark the income tax rates revolve around 5-15% from the employees earnings. The income tax rates in Germany are between 10% and 20% from the employees’ earnings. If you are working in Holland then you would pay between 30-52% income tax on your wages, depending on the amounts you earn. The tax payers in Norway get 28% of their work related income deducted while also paying wealth tax on the things they own.
Many international workers end up overpaying tax while because they do not get put on the right tax code or they are not aware of credits and expenses they are entitled to claim.
The good news is that even though you are a foreign worker, you are still entitled to claim back tax you over pay. The Average UK tax refunds are £963 for PAYE workers while average German tax refunds are € 1020. The average amount of the tax refunds from Holland is € 850. The average Irish tax refund is € 840.
In most countries it is a legal requirement that you file a tax return every year.
Filing an international tax return can be complicated so it’s recommendatory to use a professional tax refund provider such as www.taxback.com.Completing your annual tax statement with incorrect information may result in penalties, lower tax refund amount or even money owe to the government. On the other hand, there are legal options to maximize your income tax refund such as taking advantage of credits, allowances, exemptions, tax treaties or expenses which decrease your income tax liability and allow you to receive a larger tax refund. If you have worked abroad you can use this free online tax calculator to estimate the amount of the tax you can bet back.
Should you decide to avail of your legal right and obligation to file a tax refund from your time working abroad you can submit your application online here!