okeefa

Hi all, I have tried searching for this and have come up with little information, there appears to be talk of self-employed income tax situations but i was wondering about the following questions when one becomes an employee.

Does the employer pay the employees income tax direct to the collector of taxes or does an employee require the services of an accountant?

Although i am not so naive to expect a company car or other form of company benefit, i am curious as to how the taxation of these benefits are dealt with in Tenerife compared to UK.

Thanks in anticipation.

Janet

Yes, and social security contributions too

Have a look at THIS .... wasn't SO difficult to find !

okeefa

Hi Janet, I did read this thread and have searched for tax within the thread but couldn't find any reference, have i missed something?

Janet

Sorry, my fault. It is in fact primarily concerned with social security contributions ... but this is because this is the main area in which there are problems in getting employers to toe the line.

It's actually a given here that tax will be paid. Employers cannot avoid it. Where employers can and do take the mickey is with social security contributions. Employers will have their own accountants who ensure that your tax is accounted for.

So not only will an employer have to take care of your tax and social security, there is strong legal protection and redress for employees who find this has not been done for them as expected. As Kirsty says ...

As far as taxable benefits are concerned, your employer will be liable for tax on the capital assets, and they are unlikely to be taken into account for you to be taxed on them as well.

manuelrodriguez

great, thanks for the links