Leo, let's discuss taxation, retirement, and social rights for long-term immigrants in Canada and Iceland.
A complex topic, indeed. Let's tackle it systematically.
Canada first. What's the tax situation for immigrants?
Canada has a progressive tax system; higher earners pay higher rates.
And Iceland?
Iceland also has a progressive system, but it's simpler than Canada's.
So, both countries have progressive taxation. Regarding social security, do immigrants pay from day one?
In Canada, contributions to the Canada Pension Plan (CPP) and Employment Insurance (EI) begin immediately upon employment.
And Iceland?
Iceland offers comprehensive social security covering healthcare, unemployment, and retirement for legal workers.
What about self-employment?
In Canada, self-employed individuals pay both the employer and employee portions of CPP contributions. In Iceland, the rules are similar but may differ in rates and specifics. Always consult local authorities.
What about retirement for long-term immigrants?
In Canada, CPP contributions allow for retirement benefits, supplemented by Old Age Security and the Guaranteed Income Supplement. Iceland offers a public pension, mandatory occupational pensions, and private options.
What if an immigrant leaves before retirement?
In Canada, CPP contributions might transfer to a similar system in another country, depending on existing agreements. In Iceland, it depends on the specific pension scheme.
What are the biggest challenges immigrants face regarding taxes and social security?
In Canada, navigating the complex tax system and understanding credits and deductions are key challenges. In Iceland, language barriers, local customs, and the high cost of living present significant hurdles.
So, strong financial literacy is essential in both countries.
Absolutely. Research thoroughly, seek professional advice, and learn the local language for smoother transitions.
Excellent advice. Let's conclude for today. Remember to like and subscribe!
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