Organisations mobilise their human resources across boundaries as they conduct business across borders. Workforce mobility is a huge challenge that necessitates careful preparation from multiple angles. Furthermore, in addition to planning, certain compliances as mandated by various regulations must also be met. Issues commonly encountered by multinationals in human resource mobility, multinational firms typically face the following challenges when assigning their expatriate staff around the world:
Our team of experts assist clients in mobilisation of its human resource, by developing unique solutions customised to the needs of the clients in an efficient and law compliant manner. We provide a broad spectrum of services for assistance in all necessary compliances for the employer as well as the expatriate employees. An illustrative list of our services is as under: -
- What laws to be complied with in the host country and how such laws will be complied with?
- What will be the cost to the company on account of employee mobilisation, how can such cost be optimised?
- • What will be the tax implications on account of expatriate assignment both to the companies as well as the expatriates?
- Whether there will be any PE risks on employee assignment, including deciding on who will be the ‘economic employer’ and if yes, how these can be dealt with?
- Whether any exemptions under tax treaties be claimed?
- Does economic employer have to comply with social security contributions?
Our team of experts assist clients in mobilisation of its human resource, by developing unique solutions customised to the needs of the clients in an efficient and law compliant manner. We provide a broad spectrum of services for assistance in all necessary compliances for the employer as well as the expatriate employees. An illustrative list of our services is as under: -
Our Service Offerings:
- Advisory Planning and advice on employee assignment to India prior to the arrival of expatriates in India
- Advising on assignment structure based on specific facts of a multinational company so that both the employer and personnel are in efficient compliance with Indian legislation
- Employee supervision from the moment of arrival into India till the completion of the assignment
- Addressing BEPS and PE issues for foreign corporations with expatriate personnel in India
- Advisory on secondment agreements and cost recharges for such secondments, both in terms of withholding tax and transfer pricing
- Advising on the compensation structure, ‘take-home’ pay of employees, and possible investments that employees may make to take advantage of the tax benefits granted by legislation;
- Employee Stock Option structuring in a tax-efficient manner for both employers and employees, as well as advising on the essential tax consequences in respect to the issuing of ESOPs
- Providing advice on any exemptions or benefits available under Indian domestic tax legislation and/or the Double Taxation Avoidance Agreement.
- Employee eligibility for overseas tax credits and documents required for claiming such tax credits from the perspective of Indian income tax.
- Assisting companies in obtaining visas/work permits for their staff;
- Obtaining registrations/approvals from immigration officials;
- determining the expatriate’s residential status and, in the case of dual residence, advising on the applicability of the ‘tie-breaker rule’
- Assisting clients in acquiring registrations with both the tax and social security authorities;
- Employee withholding tax and social security contributions are calculated monthly so that firms’ cash flows are optimised throughout the year.
- Filing of withholding tax returns with the appropriate tax authorities and social security returns with the appropriate Social Security department authorities;
- Obtaining ‘No-objection certificates’ for expatriate personnel before to their departure from India; Other compliances as required by various legislation.
- Handling the audit before the tax authorities if the tax returns are chosen for audit by the tax authorities; If the tax authorities make any changes to the returned income, assisting in representation and litigation before the various forums (such as Commissioner-Appeals, Tax Tribunals, High Courts, and the Supreme Court).