Deploying staff on global assignments can create escalating challenges for managing the risks arising from in tax, social security, immigration, payroll and corporation tax considerations. To be able to respond to these challenges, global mobility policies and processes often need to be implemented and / or reviewed from several different areas of expertise. This complex future demands flexible solutions to saving expenditure and minimising unsuspected risks and liabilities, while maintaining the quality of service provided to your internationally mobile employees.
Whether you are a multinational enterprise with a large expatriate population or deploying your first international assignee, you would like to manage relating to global mobility filing and reporting obligations. Our specialists can provide you with practical expertise to support you in the deployment and management of internationally mobile staff.
- Expatriate and employer tax compliance: Complying with local regulations regarding home/host income tax returns, mandatory registrations in the host country and dealing with tax authorities are important to minimise unsuspected risks and liabilities.
- Expatriate and employer tax advisory: National tax laws and international tax treaties have to be taken into account when planning for global mobility assignments to determine an optimal position for the employee and the employer.
- International social security: Without prior planning employees generally fall to be socially insured in the host location. This may not necessarily be the optimal position for employee or the employer and may lead to additional liabilities. Careful advance planning regarding an assignees social security should be undertaken to understand the best position for employee and employer in light of the domestic rules and any treaties between two countries.
- Expat facilities: There are several expat facilities for employees with cross border business, such as the 30% allowance ruling.
- Strategy and policy design: It is advisable to develop a competitive and tax efficient global mobility policy with standardised terms and conditions of various secondment types. As the variety of assignment models continues to increase it is critical to have an understanding of the latest local interpretations on emerging trends to structure cost-effective policies in order to achieve specific mobility goals.
- International employee payroll: The aim is to ensure that correct and complete data is collated and processed via the relevant payroll on a timely basis. However, you need to ensure you are aware of legislative changes and compliance on all payroll matters so that you operate the correct salary withholdings and make the appropriate local reporting.
- Pension plans: When an employee is working abroad the home country pension plan may not be tax efficient in the host country. Ensuring you understand the cross-border tax treatment of your pension plans will ensure you are able to reduce any additional tax burden to a minimum.
- Immigration: As a general rule the more attractive a country is as a destination, the more difficult and variable the laws, regulations and policies governing border control will be. It is important to be aware of work permit or visa requirements and to start the application procedures well in advance. Employers who employ highly skilled migrants must respect the salary conditions.
- Equity incentives: It is crucial to determine how an assignee might be assessable to local taxes on the vesting or exercise of an interest in an employment related equity incentive scheme from which the employee receive a benefit before, during or after assignments. It is important not to overlook the employer reporting obligations in each country for these types of schemes.
- Risk and cost management consulting: It is important to manage your global mobility risk and cost effectively, by undertaking a regular evaluation of tax-saving opportunities including guidance on how to avoid fines, penalties and unnecessary fees by streamlining processes and documentation and policy development.
- Technology to support global mobility: Using an effective tool to track, manage and report global mobility data helps to ensure you can manage process risk and management information while monitoring your global mobility deadlines, and capturing business travel data in real time.
12 April 2023 - According to the EU Regulation on social security Nr. 883/2004, the general rule is that an employee is subject to the social security system of the State where the employee works. This main rule is possibly going to change and may also affect you or your employees.
23 December 2022 - Do you pay workers or service providers who are not employed by you? Unless the service provider issues an invoice with VAT, you must provide information on these payments to the tax authorities. This is called the information reporting obligation.
2023 is in zicht. Welke acties moet u nog nemen (of eventueel uitstellen) om de fiscale faciliteiten volledig te benutten? Mazars heeft de belangrijkste fiscale tips voor u op een rijtje gezet.