Managing employee mobility in a world reshaped by BEPS: Survey results

How changing global tax policy is impacting organizations with globally mobile employees - and the teams that manage them

The survey looks at how organizations with people on the move are tackling the challenges of global mobility and managing the risks posed by the BEPS (base erosion and profit shifting) recommendations. 

Organizations need to consider that where their people work and the activities they perform – even short term business visitors – can have far reaching tax implications.

 

Read the full report


About the survey participants:

224 participants from 26 countries across more
than 25 industries

81% of participants within HR or mobility roles

19% in tax or finance roles
 


Who should read this:

Global Mobility teams

Human Resource teams

Tax teams

Finance teams
 

How does your organization compare?

23% don’t know who has responsibility for short-term business visitors in their organisations

Only one third have policies in place for short-term business visitors

19% say keeping up to date with regulation and compliance across multiple territories is their biggest mobility concern.

 

 

 

This creates new risks in a post-BEPS world

The OECD’s BEPS project – intended to make sure profits are taxed in the territory where the value-creating activity is performed – has been by far the most significant tax development for global mobility. Tax authorities are paying closer attention to Permanent Establishment risk – under BEPS the PE thresholds have been lowered meaning they could capture more of the activities of globally mobile employees, particularly senior decision makers and international sales staff.

The incidents of challenges from tax authorities related to PE requirements have increased sharply in the past two years. 24% of our survey respondents say they’ve received a PE challenge recently.

Do you know what your employees are doing?

In this world, it’s important to know not just where your employees are, but also what they’re doing. 31% of companies don’t know the exact number of their employees working internationally and 17% don’t know who has responsibility for short-term business visitors.

From the perspective of mobility, there are numerous areas where mobility decisions –whether sanctioned internally or not – could increase PE risk.

Managing employee mobility in a changing landscape

How is your organization managing the opportunities, risks and complexities that come with having a globally mobile workforce?

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Contact us

Michael Colvin
National Leader, Tax - Global Mobility Services
Tel: +1 416 687 8237
Email

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