GTN Mobility Tax Blog

As organizations compete for talent, flexible work arrangements are no longer a perk, they are an expectation. However, while employees gain flexibility, employers may take on new and often unseen compliance risks.

To you, the HR manager, “home” means employees should work from the address reflected in company records and payroll systems. But to the employee, “home” may simply mean they can work remotely from anywhere they choose. That could mean working from another location within their Home country or from another country altogether.

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 one-way transfers. However, international tax compliance for cross-border employees can present unexpected challenges for both the employee and the company. Even a single day of work in a foreign location can trigger complex tax filings for the individual, as well as tax reporting and withholding obligations for the company in the Home and Host countries. Failing to comply with these obligations can have serious consequences, such as unexpected tax bills, increased audit costs, financial penalties, and legal and reputational risks for the company and the employee.