How are non-residents taxed?

Talexio
Talexio
  • Updated

Overview

If an employee is classified as “Non-resident”, the tax rates used for the first 183 days from the Non-Resident Arrival date are these: 

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The official source for these rates can be found by clicking here.

Permissions

To save an employee under the non-resident rates, you will need the Create Employee and Manage All Employee Data permissions. For permanent non-residents, you will need the Manage Employee Position History Permission.

Temporary Non-Resident

To set up a Non-Resident:

  1. Go to the relevant employee’s profile (or click add new employee if the employee is not yet on Talexio);
  2. Click on the Details tab;

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  3. Add a date to the Non-Resident Arrival Date field;

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  4. Further down, underneath Payroll, select the Tax Status which will be relevant to the employee after the 183 days (6 months) have elapsed.

Talexio will automatically use the Non-Residents tax rates for the first 183 days from the date added to the Non-Resident Arrival Date field. Once the 183 days have elapsed, Talexio will default to the Tax Status chosen.

If the 183 days elapsed in the middle of a month, for the whole duration of that month, the employee will be taxed at the normal Tax Status rather than the Non-resident Tax Rate.

Permanent Non-Resident

If the Non-Resident Tax rate should apply permanently, then the relevant Tax Rate Type should be chosen in the Position History section. 

First of all, follow steps 1-3 above. Then, go to the employee's position, edit the latest position (or create a new one if the employee does not yet have a position set up), and go to the final tab (other payroll information). 

From this tab, click on the Tax Rate Type dropdown menu and select Permanent Non Resident.  

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Click save. If you are editing a position then you will be asked to confirm whether you are correcting a mistake or creating a new position. If you are simply amending the profile, click on correcting a mistake. Please note that if this change occurs after an employee has been added to the current payroll, then his/her payslip will require a refresh. For more information on refreshing payslips, click here. 

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