Fiscal implications of non-planning temporary displacementduguech
The need to internationalize and meet the demands of a global market, increasingly requires companies to plan strategically and orderly and consider short-term assignment of workers.
Failure to comply with legal obligations, both in the country of origin and in the country of destination, may involve inconveniences, not only in immigration and social security, but also tax. Basically related to the regime applicable to income and income obtained by the worker abroad.
In this sense it is necessary to consider:
- The tax on the income of natural persons, taking into account the exemptions applicable in each particular case, will depend on the worker´s duration of stay abroad, the nature of the displacement and the company to which services are provided.
- The wealth tax, to determine who are likely to be taxpayers in the country of origin or the destination country.
- Failure to comply with tax obligations results in the majority of economic consequences associated with: non-compliance with applicable tax returns, inadequate payment of income tax, wrong calculation of the foreigner’s payroll and their respective tax obligations; To name but a few.
The previous advice and the definition of a Program of displaced workers of short duration in the company, supposes a saving of money and time in the management. This, in addition to avoiding suspensions in the execution of projects.
This information is not in any way legal advice, serving only as an informative purpose. If you need professional services in the area of Global immigration and Mobility, please contact our firm.
*It should be noted that the rules of any of the countries listed and the procedures suggested might change at any time without notice.