Countries that tax tuition

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goldfinger77
Posts: 1
Joined: Tue Jan 10, 2017 9:50 pm

Countries that tax tuition

Post by goldfinger77 »

My wife and I are planning for our next location, but it's the first time that we're moving since our children were born. We've heard that Germany is a country that will tax the free tuition your children get at your school, and it seems like that would make it prohibitively expensive to live there. Is that in fact the case? And are there other countries that tax the tuition benefits international school teachers get for their children? Thanks!
Artrageous
Posts: 36
Joined: Sun Oct 20, 2013 2:49 am

Re: Countries that tax tuition

Post by Artrageous »

Singapore taxes tuition.
PsyGuy
Posts: 10789
Joined: Wed Oct 12, 2011 9:51 am
Location: Northern Europe

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Post by PsyGuy »

Most WE regions tax tuition benefits. They consider tuition/place waivers/seats as compensation for services. The general average is that a tuition waiver is valued at about 10K/student/yr. You then figure the tax rate on it as ordinary income and thats how much you owe, it usually comes out to a month of salary per student/year.
It is prohibitively expensive on one salary, especially with more than one child.
This is partially mitigated by child tax credits in various regions.

One option is you dont have to enroll your child in the IS and thus take the tuition/place waiver/seat, you can enroll them in a local DS, a DS with an IE academy, or in a Euro school.
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