30% trailing for Europe / Asia
Many companies give X% tax deduction to foreigners working in their country for purposes of attracting talent. How would you calculate this in total comp? Do you just calculate like what your Net is and compare that to the gross figure in US? Like in Amsterdam. Let’s say: If i make 200K and they give me 30% tax deduction I’m paying taxes on just 140K so my net is maybe 110+60K. Whereas in the US let’s say California to make 170, i would need to make 250K. Would you say my total comp is 200K or 250K or something in between?
Microsoft BadNews Aug 9, 2018
Plus if you're a us person any income over $90k (I think) is double taxed at the federal level, right?
Google Xoogle Aug 9, 2018
Nope. In most countries in Europe you can avoid double taxation.
Your net in Amsterdam would be 75k+60k. The tax rate in Netherlands is ~42-52% on the rest of your 70% income. So in Amsterdam €250k after 30% ruling brings your €167k and without 30% ruling that would be €128k. And your TC previous known as CTC (cost to the company) is always your gross salary and not what you are taking home and then reversing it. Also good luck finding SV like salaries in Amsterdam or even the whole of Europe.
What a great answer. Thank you!
Pleasure. The rule of thumb is that it you want to make money stick to U.S, if you want a better WLB, come to Europe. Work until L6 in US and the make some good savings and find a retirement job in Europe