Q. What is the official definition of a
Visiting Scientist post ?
A. Visiting Scientist positions are defined in
"Commission Decision 85/593/Euratom of 20 November 1985, as
ammended by Decision 93/95/Euratom and in particular Article 3(2)
thereof". However, the UK Inland Revenue cannot use this
information apparently as it means nothing to them.
Q. What is the Protocol
on the Privileges and Immunities of the European Communities
?
A. Chapter 5 of this sets out the tax and social
security status of Commission employees. The UK Inland Revenue
has an Explanatory Note explaining Article 14: Bootle sent me a
copy. This states (para 6) that "the Article does not affect
the treatment of Community pay and emoulements, which remain
exempt from UK tax." which is in Article 13.
Q. As a visiting scientist at Ispra, will I
pay UK income tax on my JRC salary ?
A. It is exceedingly difficult to get a straight
"yes" or "no" answer to this question even
though the JRC gets several UK visiting scientists every year.
Three months of intense questioning to the Human Resourses Dept.
did not result in any direct answer to this question, just a
repetition of Article 11 of the Visiting
Scientist Guidelines. It seems to depend on your personal
situation though the Human Resources Dept. does not even tell you
this in plain words.
Q. Do Commission officials pay UK income tax
?
A. No. "Commission officials" are
explicitly exempt in UK law from UK income tax wherever they are
employed and for whatever period as their salaries are considered
to be "euro-income tax pre-paid".
Q. Do non-official
("non-statutory") Commission employees pay UK income
tax ?
A. Only if they are out of the UK for less than
a year. Any non-exempt employee is liable to pay UK income tax if
they are "ordinarily resident" in the UK. By UK law,
Commission employees who are UK nationals (possibly including
visiting scientists, perhaps not), are considered to be
ordinarily resident in the UK wherever in the EU they work.
However, even if you are liable, and even if you are ordinarily
resident in the UK, you still do not pay UK tax if you live
outside the UK for a "qualifying period" of 365 days:
which called the Foreign
Earnings Deduction (FED). You can visit for brief periods;
the precise definition of "qualifying period" for the
FED is defined in UK leaflets IR58
and IR20 (all leaflets are now on the web). Note: the FED was
eliminated on March 17th, 1998.
Q. What question should I ask of the Human
Resources department to find out whether a Visiting Scientist is
a statutory official or not ?
A. ' I know that "a visiting scientist
shall comply with national tax laws applicable to him..." (Visiting Scientist Guidelines.
Article 11, para.2). What I am trying to find out is how the UK
national tax laws apply to me. The question is: is a Visiting
Scientist 'an official or other servant 'of the Community or not?
That is, is a Visiting Scientist treated the same as other
employees at JRC ? This is easy to determine. If Human Resources
issue "written confirmation (normally in the form of a
certificate" (see attached letter) to UK nationals working
at Ispra as Officials, but do not issue such certificates to UK
nationals working as Visiting Scientists, then that would be
clear.' However, I received no letter answering this question
this question and it was only after I arrived in Ispra that I
discovered and was then told verbally that visiting scientists
are indeed non-statutory
Q. OK, is a JRC visiting scientist an exempt
"Commission official" ?
A. You will not be told this in advance, however
many time you ask. There is, however, indirect evidence. Your
site pass does not have a european flag symbol on it and
says "NON-DIPENDENTE" ("non employee") in
capital letters on a yellow background. When arriving and
registering, one of the dozens of forms you must sign says you
are a "non statutory" employee but no explanation will
be given. My repeated requests before coming to Italy to the
Human Resources department for the tax exemption certificate
(required by the UK Inland Revenue office) had no response
whatsoever, not even a refusal: 'Please can
you confirm to me, in writing, that the position of Visiting
Scientist is "subject to Community Tax for the benefit of
the Communities" ?'. 45 days after starting work I got a
certifying letter from Human Resources which states that Visiting
Scientists are not officials of the Community.
Q. OK, so a Visiting Scientist is not an
"official", but is he an "other servant"?
A. This is still an open question with no
official answer backed by legal decision or regulation. The UK
Inland Revenue appears to think so, but are in the process of
checking. They are somewhat surprised that they are the ones who
need to check this..
Q. Where do I get authoritative advice from
the UK tax office ?
A. From the Inland Revenue in Bootle,
Merseyside: (0)151-472-6000 who will then refer you to your local
tax office. Neither have ever heard of JRC visiting scientists
and have no idea whether their rules for commission employees
apply to you. Issues of this type are never properly answered by
phone. Instead you must write to your local IR tax
officer for a written reply to specific questions. Look in the UK
phone book for the address. Allow 3 weeks for a reply.
Q. How does my UK pension system work when I
am in Ispra ?
A. Well before you leave the UK, write to your
local inspector of taxes to ask if you can continue to pay
regualr pension contributions while you are abroad. This is
necessary if you are "opted out" because you will be
getting a UK contribution to your private pension. It is possible
to just leave the matter entirely and pay it all in a lump sum
when you get back to the UK. Your private pension scheme (e.g.
Norwich Union) may well need to be re-started with a new policy
simply becaue you are out of the UK (mine did), and your pension
advisor may not know this until they actually tell the pension
scheme operator. So give them lots of notice and prompt them
regularly until they check properly.
Q. What happens if you write to your local
tax office for advice ?
A. This (my italics):
Our ref. 126/1169/f/pjb, Date: 5
November 1997
Inland Revenue Cambridge, Block A
Government Buildings, Brooklands Avaneue, Cambridge CB2 2DT
+44 1223 462656 x6035 tel.
+44 1223 456083 fax. Office Services
Dear Sir,
Thank you for your letter of 20 October 1997.
I enclose booklet IR20 which gives general information on income taxable in the UK.
Detailed below is the procedure you have to follow to claim exemption from UK tax on your income from the European Communities Laboratories if it is covered by the exemption.
'Officials' and 'other servants' of the Communities are exempt from national (including United Kingdom) taxes on salaries, wages and emoluments and pension paid to them by the Communities. These are instead liable to a tax for the benefit of the Communities ('Community tax') which is deducted at source by the Community body which makes the payment. To obtain this exemption you need to submit written confirmation (normally in the form of a certificate) by the Community body that you are an 'official or other servant' and your emoluments are subject to Community tax for the benefit of the Communities. If certification in these terms is provided by the appropriate Personnel Section, then it exempts the official emoluments from UK tax.
The original reference to the Article is in the Protocol on the Privileges and Immunities of the European Communities, 1965. In regard to visiting scientists decision I have been unable to find any reference except that the exemption may be extended to new Community bodies from time to time. You will need to contact DSS regarding NI contributions.
Yours sincerely, PJA Birch.
Q. Will I be entitled to the Foreign Earning Deduction ?
A. This UK facility (FED) means that if you are
ordinarily resident in the UK but are outside the UK for a
"qualifying period" of 365 days, you pay no tax for
income earned outside the UK during that period. The FED was
cancelled with immediate effect on Budget Day (March 17th) 1998,
but anyone abroad at the time would be
able to claim FED exemption on money received in their hands
up to March 17th so long as they stayed out the whole 365 day
period (which allows various 1/6 rules for brief visits to the
UK) - but that is a non-official advice. It is possible that the
365-day period may have to have finished by March 17th 1998.
Q. What if my visiting scientist position
runs from April 1st to
March 30th ?
A. In this case you are not resident in
the UK even if you are ordinarily resident, so long as you don't
return before April 6th (this may be incorrect: you may need to
be in foreign employment until after April 6th) and do
not spend even a single day in the UK in that year.
Theoretically you would be subject to Italian income tax, not UK
income tax, but the JRC des not concern itself with things like
that.
Q. Do I have to pay Italian income tax ?
A. (Does anyone?) The Human Resources Dept. did
not answer this question despite being asked twice by letter.
Once there in person, I was told verbally that I had a choice and
could choose to be taxed either in the UK or Italy. I have not
been able to confirm this from official sources. The UK has a
bilateral agreement with Italy with special provisions for
tax-free research grants - which I learned about from Bootle
after being in Ispra for 8 months. I am still trying to find out
if this can apply to visiting scientists.
Q. But
if a Visiting Scientist is a researcher, surely I don't pay
tax because of the bilateral UK-Italian reciprocal agreement,
Article 20 covering teachers and researchers for periods of less
than 2 years ?
A. Possibly. The Inland Revenue is prepared to
countenance this as an exemption to UK tax, but Article 20 relies
on the research being done at an "approved educational institution"
and although it is for UK tax purposes, the relevant certificate
has to come from the Italian tax authorities in Rome. No
authoratitive advice has yet been received concerning the status
of the JRC. You will need to write to Ufficio Distrettuale
Imposte Dirette, Via Largo Rodari 3, Gavirate (VA) in
Italian. Telephone (0332)-743076. I wrote to them in English but
received no reply (yet). However, they almost certainly have to
refer to head office in Roma.
Q. Are
there any UK tax allowances I can claim?
A. The Visiting
Scientist Guidelines Article 2 say that the salary of 5,500
ecu shall be reduced by 25% if you will be staying in the same
country. I interpret this to mean that 25% of the total
(0.25*12*5,500 = 16,500 ecu ~ £11,700) is to be interpreted as
"relocation" expenses and therefore tax-free in the UK:
"If you relocate for job purposes, the first £8,000 of
any help you receive is exempt from tax [in that tax year]
so long as certain conditions are met", see IR 134. You
then also have to pay tax on the personal travel,
luggage allowance and medical fees which Visiting Scientists do
get reimbursed for by the JRC and I don't think you can present
receipts to claim back that tax. Strictly speaking, you also have
to pay tax on all your business travel (mission) allowances and
then claim back tax by presenting receipts. So keep all those
receipts, even if the JRC office doesn't want them! The Human
Resources department at the JRC is unable to help you with any of
this and is not even aware the issues exist.
Q. Will I be able to get an E-101
"Certificate of Continuing Liability" from the UK DSS
while I am abroad.
A. If you ask far enough in advance. You have to write
to your local DSS office and wait for a phone call - do not
omit to get the name and phone number of the person who then
calls you or you will have to write again and wait another 3
weeks.
Q. Will I and my family then be eligible for
a form E-111 for health expenses ?
A. No. You have to be earning a UK salary, or
rather, paying UK national insurance, to do this. Even so, an
E-111 is only valid for 3 months. Note that you are entitled to free health care in Italy since 1978
but it is unknown whether this requires an E-111 or whether it is
something entirely different..
Q. Is there a bilateral reciprocal
arrangement between the UK and Italy, such as there is between
the UK and many countries with National Health Services, so that
health care is free ?
A. Yes, but only if you are an
"employee". The JRC Human Resources department insists
that Visiting Scientists are not employees, do not pay Italian
Social Security, and so you cannot claim your health care
entitlements. I believe that visiting scientists probably are
legally employees, but it requires a proper legal investigation
to find out. The legal department of the JRC will not initiate
such an investigation except from a statutory official.Note that
you are entitled to free health care in
Italy since 1978 but this is apparently not a bilateral
agreement..
Q. Surely the Commission must have someone
responsible for us "migrant workers" ?
A. Yes, it is DG V, who have a comprehensive
website including
social security aspects with many documents such as "Improving
social protection for people moving within the Union"
and an explanation of the E-XXX
forms. There is a group of advisors called EURES
with people across FFEurope: Contact EURES (European Employment
Services), T&EA, Gloucester House, Chichester Street, Belfast
BT1 4RA. Tel: 01232 252222. For further information on EURES
services in the United Kingdom and for a full list of
Euroadvisers, please contact :
Mr Ted Gunby
Employment Service
123, West Street - Rockingham House
UK-SHEFFIELD S1 4ER
Q. What happens if I finally manage to find
the office in DG 5 that looks after "migrant workers" ?
A. The Coordination of social security schemes Unit
at DG 5 will write to you:
Ref.014785, Date:12 October 1998
Directorate General V
Employment, Industrial Relations and Social Affairs
Social Security and Social Integration
Coordination of social security schemes
Thank you for your email concerning your social security difficulties in Italy. I also received a copy of the documents you sent to Mr. Sturdy MEP.
I understand that you are not paying social security contributions and therefore that you are insured neither in Italy, nor in the UK. You explain that your difficulties derive from the refusal of the Joint Research Centre to recognise you as an employee.
The social security rights of migrant workers are protected by Community law, namely regulation 1408/71. According to article 1 a) of this Regulation, a "worker" is someone who is insured under a social security scheme in a Member State. Therefore you could not be considered a worker under Regulation 1408/71, since you are insured in neither country. In other words, Community rules only coordinate social security schemes, but Member States remain free to determine, in particular, who is to be insured under the legislation.
Consequently, it seems that the question relates more to your right to be insured inItaly, under Italian legislation, on the basis of your activity: this is a matter for the national authorities to determine.
However, I would like to inform you that according to Italian legislation (law no.833 of 23 December 1978) it seems that you could be entitled to healthg care on the only basis of your residence.
Yours sincerely, Vali Kolotourou, Head of Unit.
Q. How do I find an italian insurance company
?
A. In the office of the parents association of
the Scuola Europea, in Building 1 of the JRC site, on the days
when the parents association is not meeting, a series of
insurance companies set up office in that room. This is not told
to you on arrival, you find this out when your wife or husband
attends the first meeting of the Club de la Donne (wives club)
which meets in the Club House .The
usual insurance is with a company called Van Breda. (Note that
their standard contract has the insurance cover expiring at the
end of the contract and it is possible to extend it only by 6
months.)
Q. What ?
A. How.
You may be reading this at a mirror site or as an emailed copy in which case you may be reading an old version and some local links may be broken. Send an email to get a corrected and updated copy.
Important - If you disagree with anything here, or you find an error, you should send email directly . Unless you email me there is no way to ensure that your corrections will get to me promptly. In particular, if you attempt to report an error by going through any official JRC channels without also emailing me at the same time, in all likelihood nothing will happen immediately and the error will remain here for some time.
Please do email me if you find an error, I take every effort to ensure that this is factually correct.
Note that it is a characteristic of FAQs to present a negative impression because the most important information is always that which is unpleasantly surprising.
Q. What ?
A. No. Non posso.
Ispra information | Tropical Vegetation Unit's Guide for JRC Visitors
Official Information on Fellowship Opportunities at the JRC Sites
This tax page is part of a FAQ under continual revision since 25 December 1997.