The cross border movement of people can become complex as an employee or individual effectively interacts with two (or more) different tax regimes at the same time.
As an employer, you need to be aware of probable and ongoing reporting and withholding obligations in both the employee’s “home” and “host” country. The position of the individual employee also needs to be considered.
Critical issues to consider include:
How best to structure the work assignment.
What will the employee’s global liability be, and can this be modified by a double tax treaty?
Can tax be made “neutral” providing the employee with certainty as to what their net after tax earnings will be?
What are the implications for National Insurance and social taxes in the overseas country?