Global mobility services

Sending staff abroad on assignment for a longer period of time needs preparation. This includes applying for A1/posting certificates or applying to continue paying social insurance voluntarily. Workers should be given an overview of their social insurance claims, at a comprehensive pre-decision meeting, for example. Before sending employees on assignment to countries with which a treaty for social insurance hasn’t been made, it’s a good idea to perform a risk analysis.

We’ll assist you through all the preparations for assignments.

To ensure tax compliance and to meet your insurance obligations, the status of assignees abroad must be clarified – where are they liable to tax? Is a double taxation agreement in place? How are workers to be insured for pensions and illness? When is there an obligation to double insurance? Which country are the insurance providers resident in? The responsibilities and conditions for compliance will vary depending on the set-up of the business and the employment. The penalties for not complying with the tax and social insurance rules can be high. That’s why this subject should be given high priority.

Our global employer services keep track of everything, from determining assignees’ status to advising on current assignments all the way to restoring the original situation when they return to the home country.

We’ll hold interviews for you on departure and return – entirely for your organisation’s purposes. When it comes to cross-border issues, we know what’s important.

For cross-border assignments, the principle of corresponding taxation applies. This is designed to prevent tax conflicts between countries and to tax the worker consistently and fairly on an international basis. It ensures that double taxation is accurate, and that non-taxation is avoided as far as possible.

We will prepare your income tax returns, taking into account your international commitments.

To ensure tax compliance the status quo related to the tax situation of your employee assignment must be established. We compile a comprehensive tax opinion on the international assignment, taking global mobility rules into account.  To do this we collaborate with local tax advisers who are part of our international network and experts on tax issues in their country.

Pay related to global mobility can easily become complicated. We’ll not only prepare and assist with your national payroll but also your international shadow payroll, complying with all the legislation in the various countries and avoiding double taxation. 

Hypothetical tax is deducted from assigned employees based on the tax they ordinarily pay in their home country. In this way assignees are protected from a higher tax burden in their host country. The employer company takes responsibility for the assigned worker’s actual taxes in the host country so that he or she receives the agreed net pay. To do this a tax equalisation has to be calculated between the hypothetical tax liability and the tax actually paid. Such costs are budgeted in a cost projection. As part of our global mobility services, we calculate for you the hypothetical tax, equalisations to be paid out and the cost projection.

Are assignments standard at your business? Do you benefit from compensation and pension systems and structures that follow your assignments? Assignment policies and agreements can also be standardised. We’ll establish standards and systems at your business with which both the costs and tax issues of global mobility are treated optimally.

Employment law in global mobility is a complex subject. Together with our legal firm and international network, we’ll give you advice on all the issues surrounding the drafting and reviewing of employment and assignment contracts and policies as well as contracts in the country of employment.