For any duration of assignment that crosses a border, there are some key compliance questions related to taxes that should be considered. Getting the answers to these as early as possible in the assignment process and talking with your tax provider before finalizing the assignment details will provide for less risk, often less cost and a better experience for all involved.
Norbert Szabo from the TMF Group breaks it down into these five questions that should be answered:
- What is the legal structure?
- Where is the expatriate worker's tax residence?
- What is the social security position?
- What about payroll/tax compliance?
- What about other taxes?
Additionally, make sure accurate tax cost projections are being utilized as part of the expectation setting and budgeting process with internal stakeholders.
For some additional insight, here is an older GTN article (that never gets old) about "Managing Global Assignment Risk." Other things to serious consider are how you are managing your global compensation collection process and how you are making your global tax payments.
Here are some key tax questions to consider when dealing with expatriate workers, or becoming an expat yourself. As tax compliance practices differ from country-to-country it's important to recognise this as only general guidance. For a specific assessment of your circumstances, please contact us or connect with our HR experts at the Global Payroll Association Symposium, 23 May 2019 in Budapest.