If you have started off asking yourself if you should have read Part 1 (after reading the title), while it is not a requirement, you can go here to see part 1 covered.
In this part 2, Pat Schwan from Global Tax Network shares five common mistakes made by employers that have moved employees abroad.
Mistake 1: Failing to track employees as they travel for business around the world - As immigration and tax authorities around the world get better at monitoring their borders and sharing information with each other, there is a greater risk that companies will get caught having employees doing things they shouldn't be doing or shouldn't be doing for so long.
Mistake 2: Failure to establish firm precedents and stick to them - Creating clearly documented tax policies can help save time and expense from educating and negotiating with every employee.
Mistake 3: Attempting to implement ‘one-size-fits-all’ solutions - While having a policy in place is important because every country has its own unique tax laws, know that there will be situations that need exceptions to maintain compliance or to be more effective.
Mistake 4: Poor communication among stakeholders - Sometimes referred to as socializing a policy or program, it is important that all the different stakeholders have been educated, have a good understanding of why the policies are in place, or why an exception is being made and that they fully comprehend process and costs involved. To reduce surprises, they should also understand their role in the process.
Mistake 5: Accepting poor service from vendors - Dig into this article to see which questions you should be asking yourself to determine how well your providers align with your needs. Ultimately, do they have the expertise and the responsiveness needed to support your mobility program?
For more on the topic, go to our Trending Topics page and type in expatriate tax in the search box in upper right side of the page.
The number of businesses choosing to move employees abroad, as part of their efforts to increase their international presence, is increasing each year. Unfortunately, some businesses are exposing themselves to unnecessary risks when it comes to tax compliance in the Home and Host countries of those employees by failing to have a plan in place to avoid mobility tax problems. Below are five common mistakes made by employers who move employees abroad.