Expats and taxes

Today globally active companies are faced with an increasing complexity of cross border taxation matters.

In your role as employer you are under the obligation of complying with the national rules in the tax, social security and labor legislation in both the home and host country.

Your employees seconded abroad are subject to stricter burdens of proof due to the national subject-to-tax clauses as soon as the right to tax a part of the earned income passes on to the foreign country.

As a result of more intensive cross-border cooperation of the tax authorities, the correct taxation of seconded employees has become an enormous tax challenge.

For you it is of importance to use your resources in the best possible way and to create synergy at international level. There should not be any obstacles to the world-wide exchange of your specialists and the optimum use of their know-how.

Our services at a glance:

Consulting services for companies:

– Review and adaptation of existing payroll and HR processes related to secondments;
– Development and review of secondment guidelines;
– Design of tax equalisation models (e.g. tax equalisation, tax protection);
– Identification of income tax issues (e.g. permanent establishments, transfer pricing, VAT);
– Training and support of the personnel departments in the home country;
– Calculation, allocation and review of the deductibility of secondment costs;
– Implementation and administration of tax pooling systems;
– Design of special cases (e.g. split payroll, dual contracts, tax planning concepts, semi-retirement schemes for stays abroad).

Advice for the seconded employees:

– Arrival and departure interviews related to tax optimization before, during and after the secondment;
– Preparation of income tax returns in the relevant countries;
– Calculation of tax disadvantages within a tax equalisation policy;
– Filing of objections and other legal remedies as well as conducting appeal procedures;
– Advice on labor and social security legislation;
– Assistance with secondment agreements and dual contracts;
– Application for residence and work permits;
– Advice on cross-border social security issues;
– Application for secondment certificates for social security purposes.

Our service approach:

WT&ES is convinced that well-functioning and legally verified secondment processes can only be ensured if the personnel and tax departments are in a position to act in a timely and coordinated way. Our tax specialists working in the area of “Global Expatriate Services” are therefore in close contact with the international personnel and tax departments of our clients as well as with the seconded employees.

In our opinion the particular strength of this integrated service approach can above all be seen in the following areas:

– Optimization of the personal tax situation of your seconded employees taking into consideration the legal framework conditions;
– Defending your entrepreneurial interests while meeting the obligations of your company at international level.

Our consultants have gained many years of experience in this field while previously working at international consulting firms and corporate tax and personnel departments making them familiar with the mentality and the working methods of companies. As a result, our recommendations are not only clear and easily comprehended but also practical.

WT&ES gives advice and assistance in all issues which might arise during secondment processes relating to tax, labor and social security legislation.