When multinational companies send employees abroad to work in one of their subsidiaries or group companies, planning ahead is critical so that the appropriate process and documentation can be put in place at the outset. Too often, employees travel without adequate preparation or documentation recording the intentions and terms of their assignment. Inevitably, not having the assignment set up correctly from the outset makes the assignment difficult to manage and may result in unexpected tax obligations or other liabilities
There are five key questions to consider with any international assignment:
• How much will the assignment cost?
• What is the assignment policy and terms?
• Where will income tax be due?
• Where should employer and employee social security tax be paid?
• What are the employee payroll and reporting obligations in Home and Host locations?