Tax program services
The increasing globalization of today's markets has generated a swell in global worker mobility. International mobility is an intensely strategic issue, and getting it right means mastering the tax implications, building attractive propositions for candidates, and developing effective return programs.
You might start by asking:
- How many expatriates are in your expatriate tax program?
- What are the biggest challenges your expatriate tax program is facing?
- What changes would you like to see in your expatriate tax program?
- Which expatriate location(s) do you expect to significantly increase or decrease in the future?
- Are there any outstanding expatriate tax audits in any jurisdiction?
Now could be the time to examine your expatriate tax program to determine whether it meets your needs regarding tax compliance and tax audit challenges, as well as cost management.
- Tax compliance challenges you may face include:
- Permanent establishment risks created by international assignees
- Payroll reporting and withholding issues
- Nonresident tax filings
- Offshore investments
Tax audit challenges may include audit activity attributable to long term incentive compensation, payroll reporting and withholding obligations, and income allocation based on travel workdays.
Some cost management issues you may have to deal with are:
- Appropriate chargeback of expatriate compensation, paid from home country payroll to appropriate assignment locations.
- Budgeting for post-assignment liabilities.
What value can you realize?
By understanding all aspects of assignment programs, from policy to reward and talent management to succession planning, you can ensure that your company's mobility program is getting the best return on investments while reducing the associated risks. This can provide the following benefits:
- Compliance certainty pertaining to local rules and regulations for all international assignees
- Cost management through the execution of a consistent, effective global mobility strategy
- Alignment of mobility strategy with business objectives
- An understanding of the impact of new assignment programs on accounting and tax departments
- Higher employee satisfaction on global basis
Our knowledge of assignment programs allows us to help you develop an end-to-end mobility strategy that addresses all facets of globalization. We work with you to:
- Review assignment offer letters and secondment agreements
- Manage tax exposures
- Assist in creating compensation collection processes
- Review compensation quarterly for proper tax reporting and withholding
- Identify filing requirements and add individuals to tax authorization list as required
- Identify passive foreign investment company requirements and communicate foreign bank account reporting responsibilities
- Minimize audit risk through proper tax filings and mock audits
- Communicate reporting, withholding and recordkeeping responsibilities to corporate payrolls and assignees
- Review stock plans and implement recharge agreements
- Prepare and regularly update cost projections for budgeting purposes
- Assist with managing tax accruals