Today’s international economy can often require a highly flexible and mobile workforce. However, working internationally can present many challenges for organisations, from dealing with cross-border tax and social security issues through to managing the administration burden associated with having an internationally mobile workforce. Relocating employees can be very stressful for both the employer and the employee. There are numerous different issues which need to be considered from both a taxation and an administration perspective, and addressing these issues can often be very daunting.
Crowe Horwath’s dedicated International Mobility Team can provide you with the expert knowledge and support to ensure that all the important issues have considered and addressed accordingly.
Some of the issues to consider
Outlined below are some of the issues which need to be considered and addressed in advance of undertaking an assignment:
- Tax in the home jurisdiction can continue to apply
- Tax can become payable in the host jurisdiction, often under the local equivalent of the PAYE withholding system
- Employee tax filing obligations in the host jurisdiction can also arise
- There is often a mismatch between the tax treatment of relocation expenses and travel and subsistence allowances in the host country and the home country
- The social security position in both jurisdictions will have to be assessed
- Equity remuneration and share options can be particularly complex with local rules varying enormously,
- Continued participation in the company pension scheme in the home jurisdiction where tax relief is available may not be available in the host jurisdiction country as the pension scheme may not be regarded as a qualifying approved scheme in both jurisdictions
- Additional administration costs for the company
- Availability of SARP and FED relief for inbound secondees
- Permanent establishment consideration – It is important to ensure that the secondment of an individual to a foreign jurisdiction or into Ireland does not create a Permanent Establishment. If a permanent establishment is created the company may be liable to foreign tax on business profits deemed to be earned in that jurisdiction.
- Corporation tax deductibility in home or host country
- VAT considerations where staff are seconded cross border
How we can help you
Crowe Horwath offers a comprehensive range of services to support your internationally mobile workforce. All of our engagements are Partner and Manager-led to ensure that you receive the highest standard of service from our team. Specific areas we can advise on include:
- Structuring remuneration packages efficiently
- Tax equalisation policies
- Home and host country tax compliance for expatriates
- Payroll services and shadow payroll services
- International social security
- International tax aspects of pensions
- Share incentive schemes for expatriates
- Personal tax planning and advisory services for individual expatriates
- Corporate tax including permanent establishment issues
- VAT and Relevant Contract Tax issues for non-resident companies
A seamless international service
As a member of Crowe Horwath International, the eight largest international accountancy group in the world, we have the network to offer you a seamless service with coordinated advice and support.
Our International Mobility team’s experience and expertise, along with our close partnerships with our network member firms, ensure we provide a clear and transparent approach to the international mobility challenges our clients face.