Employees are frequently exposed to complicated tax concerns when employers send them to work abroad. Depending on the nations involved, the duration of their assignment, and the nature of their compensation, expats may be subject to greater taxes and double taxation when travelling between borders.
In order to be able to make important decisions that will effect the tax status and reporting requirements of both the business and the employee, you, as the employer, must ensure that you have a complete understanding of the local tax and social security requirements. Tax violations could occur if this is not done.
Before sending employees abroad, a firm must also answer two crucial tax-related concerns. The first is whether the corporation plans to shield foreign workers from conceivable rises in their individual tax obligations (or recoup any tax savings they may realise while on assignment). Second, take into account a payroll structure to handle the expat’s net salary and allowances, as well as remitting taxes and social security to both the home and host nations.
Before sending employees abroad, a firm must also answer two crucial tax-related concerns. The first is whether the corporation plans to shield foreign workers from conceivable rises in their individual tax obligations (or recoup any tax savings they may realise while on assignment). Second, take into account a payroll structure to handle the expat’s net salary and allowances, as well as remitting taxes and social security to both the home and host nations.
A variety of expat payroll alternatives are available to you from us, including:
- Using a payroll in the host nation
- Paying the employee from a split payroll, where part remuneration is routed through the payroll of the home nation and some is routed through the payroll of the host country
- Paying the worker from the home country payroll while setting up a shadow payroll in the host nation so that taxes can be computed and paid to the host nation’s tax authorities.