No Tax on Overtime in France: Should Assignees Care?

In August 2007, France’s Parliament approved an overtime-pay tax relief measure as part of a tax reform package designed to boost employment and spending power. It went into effect on 22 August 2007. The new measure regarding overtime pay provides a modicum of relief in respect of social security contributions on pay for hours worked over and above the legal limit; such pay is also exempt from income tax. But what does this mean for assignees? Ann Atchadé, an IES professional with FIDAL International in Paris, explains in this article.
Read the article.

The Tax System in Russia — A Work Still in Progress

All of the main initiatives undertaken by the Russian government since the mid-1990s with respect to tax system development are in the process of fruition. The kinks in the system have been noted, as time has passed and experiences prove telling, and there has been some beneficial tinkering from time to time. Notes IES professional Alevtina Borisova, each improvement has brought Russia that much closer to a tax system which raises revenue efficiently, is effectively administered, and appropriately reflects the needs of Russian businesses.
Read the article.

Singapore Tax Amnesty — Undoing Past Errors and Omissions

According to latest reports, revenue raised from penalties and fees have been increasing in Singapore according to this article from Singapore-based IES professionals BJ Ooi and Liang Mun Chuan. This could be seen as a “warning” that companies should take all steps necessary to enhance their compliance. In this article, the authors discuss the employer’s responsibility for filing a correct annual return of remuneration (Form IR8A), the types of income and benefits that are in error commonly omitted, and what the tax amnesty program is all about.
Read the article.

The Importance of Being Earnest (and Comprehensive) About Your Tax Equalization Policy

This article, by Minneapolis-based IES professional Darcy Nicora, sheds light on many of the important areas of focus — and identifies the key areas that should be addressed — with respect to a company’s international assignment tax policy. A multinational company with a comprehensive, well-documented tax policy can enhance its compliance and benefit from savings in terms of time and cost. This article provides a few tips on some key areas to consider and address in a tax policy.
Read the article.

There's No Place Like Home: What To Do with It While on International Assignment

For an employee about to begin an international assignment, the decision whether or not to keep his or her residence is one of the more important personal decisions to be made. It could have significant implications well beyond the assignment. Whether to keep vacant, rent, or sell one’s principal residence is an individual decision and will be influenced by a multitude of factors, practical, financial, and sentimental, among others. In this article, David Zydek and Chris Lundervold, Chicago-based IES professionals, help clarify some of the alternatives and incumbent responsibilities faced by employers and their international assignees.
Read the article.

When Is Housing Includible as Taxable Income to a U.S. Employee?

If employee housing qualifies as “excludible,” employers are not required to include the value of that housing in the taxable compensation of their employees. In effect, this relieves employers of the tedious process of collecting information about amounts paid or imputing value to existing employer-owned property. IES professional Rachel Paul, based in Denver, discusses what qualifies as excludible housing and the related potential benefits to employers.
Read the article.

When Crises Hit: Why Companies and Assignees Should Prepare and Plan for Worst Case Scenarios

The current global climate of violence and unrest has forced employers to seriously consider the “worst case scenario”: real and potential threats and risks to not only their physical capital, but also their human capital. Sending employees overseas to perform services on behalf of the company carries potential risks for the company and its employees. IES professionals Molli Hull and Glen Collins, in this article, take a fresh look at the need for international assignment policies that address the emergencies and crises that an employee on assignment may face and some of the related issues.
Read the article.

IRS Withholding Compliance Program Creates Challenges for Employers with International Workforces

Under the Withholding Compliance program, the U.S. Internal Revenue Service has issued an increasing number of lock-in letters to employers. A lock-in letter directs the employer to disregard an Employee’s Withholding Allowance Certificate (Form W-4) and withhold based on the IRS’s determination of filing status and withholding allowances. This article by IES professional Joan Smyth explains the Withholding Compliance program, the criteria used to generate lock-in letters, and highlights some unresolved issues regarding wage withholding for international assignees.
Read the article.

Year in Review, 2007 — United States

This article provides highlights of many of the significant developments in the United States for 2007 relevant to international executives and their multinational employers. The article is organized according to the following subject areas: (i) legislative and regulatory, (ii) treaties, (iii) forms, publications, and reports, and (iv) immigration and work permits.
Read the article.

Worldwide Digest

We are providing readers with a link to the IES practice's Flash International Executive Alert newsletters, which are archived right through the most recent issue on the IES Web site. Readers can scan the titles and select the news stories that are most relevant to their international assignment situations.
Go to IES practice's Flash International Executive Alert newsletters