GTN Mobility Tax Blog

As companies continue to expand globally, they are placing greater focus on optimizing their business objectives and employee development. Many are reassessing the costs, benefits, and overall impact of their relocation strategies, while looking for effective ways to move talent across borders. 

Traditional global mobility assignment structures remain essential tools for achieving these goals. The three most common global mobility assignment structures are long-term assignments, short-term assignments, and permanent (or one-way) transfers. Each provides distinct advantages depending on the organization’s priorities, timelines, and talent needs.  

The modern workforce is a mobile one and has expanded beyond the traditional short- or long-term assignment. Today, mobility includes a variety of work arrangements such as remote and hybrid work, as well as short-term business travel. This shift has provided greater flexibility in how and where employees work, allowing organizations to access a wider talent pool and operate more efficiently across different locations. However, with increased flexibility comes the challenge of navigating complex reporting and filing requirements to avoid financial, legal, and reputational risks.

Sending business travelers on tax-equalized assignments around the globe often makes good business sense, but how to account for the tax costs associated with assignments can be challenging. To ensure incremental tax obligations don’t take you by surprise, it helps to have a process in place so you’ll be prepared for the additional expenses your mobile workers trigger along the way. To do this, many companies implement an accrual solution.