GTN Mobility Tax Blog

Whether you manage business travelers, short-term international employees, or remote workers, you have no doubt heard about the "183-day rule."

This commonly referenced rule is part of many international income tax treaties and generally states that an individual may be exempt from income tax in a Host country if they are present in that country for fewer than 183 days within a defined period – often a calendar year or rolling 12-month period. However, this threshold is just one of several conditions that must be met for the exemption to apply.

Globally, many tax jurisdictions expect an employer (as well as the employee) to track and report business travel outside of their Home location. However, simply applying a “183-day” threshold does not always work to ensure tax compliance. On that basis we will take a deeper dive into the impact of income tax treaties on the tax cost of business travel, short-term assignments, and remote work scenarios.

The US is one of the only countries to require its citizens and permanent residents (i.e., green card holders) to file annual tax returns and report their worldwide income, regardless of their actual work location. When working outside the United States, it is often the case that US persons are subject to taxation in the county where they are physically located.

For most mobility program managers, year-end is a time to have calls with various mobility vendors to discuss the past year and plan for the next. These year-end discussions are crucial to the efficient functioning of your mobility program, as they keep you informed about the evolving landscape of global mobility and the associated tax implications.

The ever-changing nature of international business, along with emerging work trends and technological advancements, has created complex tax scenarios that require careful consideration as companies handle year-end payroll reporting and decide on services and support for their employees.