Internationally Mobile Employees
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Nowadays global business requires employees to work at various locations around the world ranging from a few days to a few years. As an employer, it is critical to ensure that your people comply with the specific foreign laws and procedures which can include registering each employee with the local tax authority, completing an annual personal tax return and ensuring documents such as a work permit and visa are correct and up to date.
If it were just a case of dealing with one or two employees this would be manageable but often international companies find they are suddenly dealing with hundreds of employees scattered across numerous countries with changing laws, procedures and requirements. Not surprisingly, trying to keep abreast of all the changes and requirements and completing all this administration can be challenging to say the least. Having to deal with a different tax adviser at each location can add further time and costs.
This is where PKF is different. PKF is a global service provider and through its network of member firms it provides complete global coverage and a complete range of tax services for your internationally mobile employees for each location around the world. Our services include:
We can help you and your employees understand the destination country's tax regulations, registration and filing requirements, and we can assist with the preparation of all the required applications and filings, at the start, during, and at the end of the employees' assignments. We can also prepare tax equalisation calculations if applicable.
Many countries adopt more protectionist employment policies than you may be used to. Avoid potentially embarrassing and inconvenient incidents by making sure that your internationally mobile employees are issued with visas and work permits consistent with the work they will be performing, and the locations in which they will be present. We can advise on, and assist with, the processing of applications for the appropriate type of visa and work permit for your employee, and accompanying family members.
If you do not have the capability to prepare the payroll in the destination country, or if you prefer to have the international assignees' payroll prepared separately for reasons of confidentiality, we can deliver a complete outsourcing solution, producing all the documentation necessary to meet your requirements, and maintain compliance with local laws and regulations.
PKF can provide personal tax advice to individuals which looks at the impact of their assignment on both their home country tax position, and the destination country position.
Having employees present in another country can create a taxable presence in that country for the employing entity, defined as a permanent establishment. We can provide advice to carefully consider the corporate tax implications of having employees assigned to a destination country, for example, will their presence trigger foreign tax compliance obligations for the home company and what options are available?
Individual residence and income tax rules can vary enormously from country to country. Benefits that are taxable in the home country may be tax-free in the destination location. Some countries tax on a worldwide basis, others only on income sourced in-country. Your compensation and benefits policies for your Internationally Mobile Employees will need to be tailored to suit individual overseas locations to avoid significant tax inefficiencies.
To enhance your ability to move employees across borders, you may wish to take tax out of the equation by implementing a tax equalisation program. These programs can be complex to administer, but do ensure that taxes are not a factor in your employees' decisions as to whether to accept an overseas posting.
To help your employee settle into their new environment, our specialists are happy to share their local knowledge with respect to housing, schools, shopping, and many other aspects of life in the destination country. They can also discuss appropriate remuneration packages with an employer concerning the types of benefits that are required, or which are customary at that particular destination.
We would be delighted to discuss how we can help you, and your company, reduce costs and manage your overseas employee obligations more effectively. Please get in touch and contact PKF at [email protected] or alternatively, contact a local PKF firm directly for assistance: click here
For a copy of our 'Internationally Mobile Employee' services brochure: click here
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