GTN Mobility Tax Blog

Over 55 years ago, scientists introduced the “greenhouse effect.” In November 1965, the Environmental Pollution Panel along with the President’s Science Advisory Committee issued a report called, “Restoring the Quality of Our Environment,” that pointed out how increasing temperatures in the atmosphere was occurring due to the buildup of carbon dioxide. The phrase “global warming” (i.e., climate change) was coined a decade later when the issue of a warming climate began to reach a larger audience.

Now, as the effects of climate change are felt by more than just the scientists, individuals around the world are urging corporations to step in. Workforces yearn for their employers to be environmentally, socially, and culturally thoughtful. In this article, we will explore the principle of sustainability and how the global mobility department can not only participate but take the lead in creating change within their corporation. Below we highlight both short- and long-term goals you can create for your global mobility program along with potential resources to help make these goals a reality.

Global mobility programs are a win-win solution for both your company and your mobile employees.

The COVID-19 pandemic and related economic challenges have resulted in fundamental changes for many industries. We have seen labor market shifts, immigration restrictions, and budgetary challenges for national and local jurisdictions across the globe. At the same time, thanks to today’s ever-evolving technology, time zones and borders are not as relevant, and we can now work simultaneously with our colleagues across all corners of the globe—especially in this new world of remote or “work anywhere” workforces. However, these technology advances will also make it more possible for tax and immigration authorities to monitor and enforce regulatory compliance on both employers and their mobile employees.

As the world of cross-border business returns and business travel begins again, you are likely thinking about your mobility program and its ability to scale with your organization’s global goals. And as your mobile workforce grows—whether it consists of remote workers, business travelers, or traditional assignments and transfers—you must consider the complications and major mobility tax issues that will surface as business travel increases.

COVID-19, current travel restrictions, and government and business shutdowns have certainly made it difficult for many mobile employees to carry out “business as usual.” This can be particularly true for employees that were on a short-term or long-term assignment prior to COVID-19. Because of safety considerations or travel restrictions, two common scenarios that have emerged from the COVID-19 pandemic include:

Mobility program managers are continuously having to evolve and adapt to new circumstances, and are doing so now more than ever. Additionally, mobility programs and program managers need to remain flexible as COVID-19 continues to impact the world. Both companies and their employees are adapting to this “new world” and finding a new work-life balance while governments are continuing to make decisions to provide economic stimulus and stabilization.

As we all struggle to keep up with the impact of COVID-19, the changing rules, and the lack of guidelines, we wanted to share a few tips that have been beneficial for our clients with mobility programs. Here is a mobility tax checklist of considerations to think about as you work to determine next steps for your mobility program and your mobile employees.