GLOBAL MOBILITY
With the current businesses being spread across the countries, enterprises mobilize their human resources across the globe. The mobility of the employees is an important task which requires planning from various perspectives. Further, in addition to the planning, certain compliances as prescribed under the geographically diverse laws also need to be complied with.
Certain issues which normally arise and faced by multinationals in human capital mobility
- What will be the CTC on account of employee mobilisation, how can such cost be optimized?
- What are the various laws particularly labor laws / social security contributions provisions company need to comply with?
- What will be the tax implications on account of foreign assignment both to the companies as well as the expatriates?
- Whether the presence of employee would create the permanent establishment in the host country and if yes, how to deal with that situation
- Whether any reliefs under tax treaties be claimed?
Our experts assist clients in a mobilization of its human capital, by customizing the solutions according 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. A sample engagement list of our services is as under: –
Advisory
- Planning and advisory with regard to deployment of employees before departure of expatriate from the home country;
- Formulating a structure based on specific facts of MNE so that both the employer as well as employees are compliant with Indian laws in an efficient matter;
- Handholding of employee from date of entry into India till completion of assignment;
- Advising on BEPS and PE risks for foreign companies in India on deployment of expatriate employees;
- Consulting on secondment agreements and cost recharges for such secondments, both from withholding tax as well as transfer pricing perspective;
- Advising on the compensation structure, ‘take-home’ pay of the employees and the prospective investments which may be undertaken by the employees for availing the tax benefits provided under law;
- Employee Stock Option structuring in a tax friendly manner both for the employers as well as employees and advising on necessary tax implications in relation to issuance of ESOPs;
- Advising on any reliefs available under the Indian domestic tax law and/or the Tax Treaties;
- Advisory on eligibility of the employees for taking foreign tax credits and documentation required for claiming such tax credits from Indian income tax perspective.
Immigration
Assisting the companies in applying for the visas/ work permits of their employees;
- Obtaining registrations/ approvals from immigration authorities;
Compliance
- Determination of residential status of the expatriate and in case of dual residence, advising on applicability of ‘tie-breaker rule’ as per DTAA;
- Assisting the clients in obtaining registrations both with the tax authorities and the social security authorities;
- Monthly computations of withholding tax and social security contributions of the employees so that cash flows of the employers are optimised throughout the year;
- Filing of the withholding tax returns with the tax authorities and social security returns with the concerned Social Security department authorities;
- Obtaining ‘NOC’ for the expatriate upon their leaving India;
- Other compliances as prescribed under various laws.
Representations
- Handling the assessment before the tax authorities in case the tax returns are picked for scrutiny by the tax authorities;
- In case any adjustments are made to the returned income is made by tax authorities, provide assistance in representation and litigation before the various forums (such as Commissioner-Appeals, Tax Tribunals, High Courts, Supreme Court).