When you send employees to work in other countries, you often expose them to complex tax considerations. Expats can incur higher taxes and double taxation when crossing borders, depending on the countries in question, the length of their assignment and the types of compensation they're getting. â€‹
As the employer, you need to ensure you thoroughly understand local tax and social security obligations, which in turn will enable you to make critical decisions that will affect the tax status and reporting obligations of both the company and the employee. Failing to do so can result in tax violations and great fines that can prejudice your business or your business reputation.â€‹
An employer must also address two primary tax-related questions before deploying workers overseas. First, whether or not the company intends to protect expat employees against potential increases in their personal tax burdens (or recover any tax savings they may realise) while on assignment. Second, consider a payroll structure to fulfill withholding tax and social security obligations in the home and host countries, including remitting taxes, social security and the expatriateâ€™s net pay and allowances.â€‹
Among all the services we can help you with are: using a host-country payrollâ€‹, paying the employee from a split payroll, in which some compensation passes through the home-country payroll and some through the host-country payrollâ€‹, etc..
All services are personalized and so that is the way you know you will receive the best service and advice that adjust to your business necessities.