Short-term assignments and business travel requires proactive tracking and management. These trips can trigger personal and corporate tax requirements based on US and foreign rules that can be complex and difficult to apply. Magnifying the concern, some countries have ramped up their monitoring of short-term business travellers to maximize tax revenue from this fast-growing population.
The traditional tools and methods used to manage short-term business travel - such as asking business teams to report travel or using electronic expense systems - are often inefficient and ineffective. In fact, many executives refer to employees who take sporadic, cross-border business trips as "stealth" business travellers because their HR and Tax departments may have little or no knowledge of these trips.
However, if the tax costs of business travellers aren't accounted for and remitted properly, you may be exposed to not only unpaid taxes but also interest and penalties that could negatively affect your bottom line.
Because the risks and processes of business travel differ for each company, you need solutions that are tailored to the specific needs of their globally-mobile employees. At a minimum, you should consider taking the following actions:
For more information around PwC's frequent business traveler solutions, please reach out to firstname.lastname@example.org.