GTN Mobility Tax Blog

In recent years, the global workforce has witnessed a significant shift towards remote work and the rise of digital nomads, defined as a person who works entirely over the internet while traveling and who has no fixed place of business. As more individuals seek the freedom to work from anywhere in the world, many countries have recognized this evolving trend and responded by offering a unique solution—the “digital nomad visa.” This visa, often with less stringent requirements than traditional work visas, allows individuals to live and work in worldwide destinations of their choosing. 

Equity plan program managers and participants have likely heard of an 83(b) election (“Election to include in Gross Income in Year of Transfer”), but often its application and advantages are misunderstood. Section 83 of the Internal Revenue Code (IRC) governs several tax functions when determining the tax consequences of transfers of restricted property such as equity or stock. These special rules determine whether an employee has income resulting from a transfer of property, when an employee will recognize taxable compensation, and how much taxable compensation will be recognized. 

This article was originally published in Spiceworks.

Employees are moving, and technology infrastructures need help to keep up. An AIRINC survey found global mobility activity has increased for 60% of companies in the last year. However, only 14% of those company leaders say they “strongly agree” that they have the right technology to meet the general administrative needs that spring out of their mobility programs. That figure must change if organizations want to avoid tax compliance and immigration headaches.

For the global mobility industry, 2023 has witnessed both significant challenges and exciting opportunities. Although continuing to ease, inflationary pressures and higher interest rates have had an impact on employees’ willingness to relocate. Ongoing conflicts in Ukraine and the Middle East have created humanitarian and security crises that will have long-lasting impacts on global economies and welfare. At the same time, advancements in automation and artificial intelligence offer the possibility of transformative change, including opportunities in the creation of administrative efficiencies and in the reduction of cost and risks.

Any company with a mobile workforce needs a solid technology platform to effectively manage their mobility program. This technology often includes features such as dashboards that provide near-real-time monitoring of an employee's tax information, portals that allow taxpayers to upload tax documents, and tracking capabilities that help monitor mobile employee locations. And now in the age of ChatGPT and other generative AI tools, it's more important than ever to utilize technology to streamline and strengthen your mobility program. However, simply having access to technology and information is rarely enough to address the tax compliance challenges that often come with a mobile workforce.