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As provided in articles 9, 12 and 20 of the Colombian Tax Code, individuals, both national or foreign, who qualify as non-Colombian residents, are only subject to income and complementary taxes on income or capital gains of national source. In the case of foreign investors holding a permanent establishment (PE) in Colombia, Article 66 Law 2010, 2019 established that income tax is assessed on the national and foreign source income that is attributable to the PE.
In today’s technological world, it is easier than ever for businesses to participate in the global economy through the use of business travelers, international assignments, remote workers, or permanent transfers. However, international tax compliance for cross-border employees can present unexpected challenges for both the employee and the company.
The National Social Security Institute (INPS) in Italy has been actively involved in the process of digitizing its services, and in order to advance in this process, as of December 23, 2022, it is possible to submit applications for the issuance of the certificate of applicable legislation (commonly known as A1) for various types of workers, both self-employed and employees.
Working from home is no longer to be considered from a purely pandemic-related perspective, but to be recognized as the new reality. Many employers allow their employees to work from home but, especially in cross-border situations, this leads to new challenges in several areas of law.
This article focuses on the issues relating to the taxation of employment income for commuters with employment in Switzerland but residency abroad. The permanent establishment risk, the place of effective management, and social security coordination are closely related topics that must also be considered but are not covered in this article.
Country: Ireland
Firm: RBK Business Advisors
About: RBK is the largest independently branded accounting firm in Ireland. We provide audit, accounting, taxation, and business advisory services to domestic and overseas individuals and companies. At RBK, our simple philosophy is to be the best professional services firm in our market. We achieve this by continuously adapting to business, technological, and societal change. We provide our clients with high-quality technical and commercial solutions that are responsive, relevant, and practical.
What mobility tax matter should organizations address prior to initiating a new assignment to or from Ireland?
Obtain advice for the employer and employee in relation to the tax and legal implications associated with the assignment in both the home and host locations well in advance of the move date. This will ensure everyone is aligned, a plan has been created, and payroll activation/deactivation is ready to go.
Country: France
Firm: Global Tax Network SELARL
About: Global Tax Network SELARL specializes in managing the legal and tax considerations associated with international workforces. Our role encompasses comprehensive advisory services prior to each mobility, guiding companies and their employees through the entire process. This includes contract establishment, remuneration calculations, handling of payroll, tax implications, necessary social insurance formalities, and liaising with relevant authorities.
What mobility tax matter should organizations address prior to initiating a new assignment to or from France?
Tax residency is the first issue to consider as it can impact whether there is tax or not, the level of tax, eligibility for inpatriate tax regime, tax registration requirements, etc.
Country: United States
Firm: Global Tax Network US, LLC
About: Global Tax Network (GTN) is a mobility tax services firm focused on empowering people to live and work anywhere in the world. We help corporate mobility program managers and mobile employees navigate cross-border tax complexities and manage risks. Our scope includes providing support for expatriates, foreign nationals, business travelers (both international and domestic), remote workers, and permanent transfers. We are the recipient of several industry awards for excellence, including Accounting Today’s “Best Accounting Firms to Work For”, as well as the INSIDE Public Accounting “Best of the Best Firms”.
What mobility tax matter should organizations address prior to initiating a new assignment to or from the US?
Organizations need to ensure their mobile employees are receiving tax counseling sessions prior to relocation. For foreign nationals inbound to the US, the pre-arrival tax consultation will help to identify, address, and mitigate additional compliance requirements such as PFIC reporting for non-US mutual funds, US trust filings for non-US pensions, tax implications of non-US rental properties, the sale of non-US residence, and reporting of non-US financial accounts.
Country: India
Firm: Broadening Horizons Services
About: Broadening Horizons Services is a global mobility specialty firm, dedicated to simplifying the complexities of cross-border mobility. Our mission is to empower clients in the seamless management of their worldwide mobility programs. Our comprehensive service offerings encompass tax, social security, immigration, and exchange control, all tailored to address the demands of cross-border workforces. Leveraging a team of seasoned experts, we provide solutions for our clients that not only align with their regulatory obligations but also provide practical resolutions to today’s global mobility challenges.
What mobility tax matter should organizations address prior to initiating a new assignment to or from India?
- Addressing the corporate PE risks associated with movement of employees to India, especially when sending operational level or senior management employees.
- Understanding the overall cost of assignment, including social security as well as indirect tax costs and trailing liabilities after the assignment has ended.
- Setting up the India tax payment process.