Internationally Mobile Employees
At BDO we recognise that in the current economic climate successful businesses require a flexible, mobile, highly skilled workforce.
For secondments to Guernsey, BDO’s Tax team advises employers on their obligations in Guernsey and assists the employee with their personal tax affairs.
For outbound secondments from Guernsey, our Tax professionals advise employers on their obligations on departure from and return to Guernsey. Through our membership of BDO International we are well placed to also advise on any obligations in the host country. We also provide advice to employees with personal tax affairs in Guernsey, and the host country.
Permanent Establishment/Taxable Presence
When employees are seconded it’s important that care is taken to avoid the creation of a permanent establishment in the jurisdiction to which they are assigned, particularly as BEPS features so highly on the agenda of many countries. The creation of a permanent establishment can lead to a company/employer becoming liable to foreign tax on business profits deemed to be earned by employers/foreign assigned employees. At BDO, we have experience in advising on what roles secondees can and cannot undertake in order to limit the threat of a permanent establishment arising.
Employees do not need to suffer either a financial hardship or experience a financial windfall as the result of the tax consequences of an international assignment. This is the principle behind a "tax equalisation policy". The employee should pay no more or no less tax than they would have paid had they remained in their original home. Such a policy will put the assignee in a tax neutral position during the assignment. At BDO, we have extensive experience in advising on tax equalisation policies that fit with your needs.