Expat Advice

An assignment of employees to a foreign country is a challenge not only for the employee but also for the assigning company:
The employee not only faces a new workplace, but a whole new culture that in most cases he doesn’t even speak the language of. Besides coordinating the move, he needs to take care of several authorities with regard to residence permit or work permit.

Furthermore, he might ask questions as follows

  • Do I need to pay taxes in my home country or in the host country?
  • Which amount of taxes do I need to pay in the host country?
  • Can I remain contributing to my home social security?
  • Is my working contract valid during assignment without restrictions?

The assigning company will face similar questions

  • Do I need to withhold wage tax for the assigned employee?
  • And social security contributions?
  • Are allowances granted to the employee during is assignment subject to income tax and/or social security either in the home or the host country?
  • Is it beneficial to make a net salary agreement?
  • If yes, how is the hypothetical tax calculated?
  • How can the income tax in the host country be minimized that needs to be paid by the company if a net salary agreement exists?
  • To which authority will taxes and social security contributions be paid?

Based on many years of experience in assignment solutions we can provide help (if necessary combined with a network of in- and outbound experts) with the following

  • Tax optimization of expat remuneration before and during assignment (Salary-split, tax free allowances etc.)
  • Social security optimization during assignment
  • Necessary declarations at tax and social security authorities
  • Establishment of (shadow-)payroll
  • Annual tax-equalizations (if net salary agreement exists)
  • Review of working contracts before/during assignment
  • Preparation of tax returns
  • Preparation/Review of company policies (Net salary agreement, remuneration policy etc.)

When there's a single thief, it's robbery.
When there are a thousand thieves, it's taxation.

Vanya Cohen