What young adults need to know about taxes
From university fees, first jobs and double taxation rules, read here about what young adults should expect regarding taxation.
Maria recently completed high school and is about to begin a course in mathematics at the University of Siena, in Italy. Charles just learned that he has got a job as a web developer in a prestigious company in Bucharest, Romania. And Sarah eventually finished her business plan, allowing her to launch her own company dedicated to products based on organic lemons in Nice, France.
What can they expect regarding taxation? They are strongly encouraged to follow the TAXEDU guide!
Income tax, property tax, inheritance tax…it can be challenging for young people to grasp this terminology. The TAXEDU section dedicated to young adults offers a sneak preview of the main taxes, such as consumption tax, tariffs/customs duties, excises, environmental tax, capital gains, etc. A short definition accompanies each term.
Tax and studies
Young Europeans beginning university must pay student fees. However, the amount depends on whether the university is funded through taxpayers’ money in that country. University fees vary greatly. In some EU countries admission to higher education is free, while it can be expensive in others.
At the University of Siena, Maria knows that she will pay taxes and has begun to search for information on the university’s website. She intends to ask for scholarships, grants or a loan to enable her to carry on her studies.
Are you about to begin university like Maria? You can search for relevant information on each EU country.
Beginning a first job as an employee
As a future employee, Charles is aware that his income will be taxed. In Romania, the personal income tax (PIT) rate is 10 %. Naturally, this rate varies from one EU country to another.
However, Charles still hesitates whether he should take the new job in Bucharest or spend some time abroad to gain more experience. Why not in Germany? If he spends more than six months there he will be considered as a tax resident and will have to pay taxes in Germany.
Are you in the same situation? You can find information on how income tax works abroad and how to avoid double taxation.
Being his or her own boss
Plenty of promising young people like Sarah have business and innovation in their DNA. For a couple of years, she knew that organic lemons and their products are the specialty of Menton, a city close to the Italian border in France, whereas it was difficult to find them in Nice.
With a great idea and a business plan, Sarah is now ready to begin her adventure. Do you feel that you could be a young entrepreneur too? You can find a treasure trove of information on how to start your business in the EU. However, you should know that VAT rules can be applied differently in each EU country. You can learn more about the rules in the country where your company operates.
Thanks to TAXEDU, Maria, Charles and Sarah can check out a range of e-learning modules in the training catalogue, which includes topics like ‘How to start a business’ or ‘When taxes appear in youngsters’ life!’ to develop their knowledge about taxation and ensure they are heading in the right direction.
To discuss with peers or tax specialists, why not kick off a discussion in the forum and meet up with the lively TAXEDU community!