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.  

When it comes to global payroll compliance, many organizations have a solid grasp on reporting for traditional expatriate assignments, covering items like tax reimbursements and Host country housing. But what about permanent transfers? Are third party relocation-related payments being reviewed for taxability in the destination country? And does switching payroll to the transfer location mean the Home country is fully off the hook for reporting obligations?

In the ever-evolving landscape of global mobility, the traditional landscape of long-term assignments has given way to a rising prevalence of permanent transferees. However, many companies have not established a formal mobility tax program for permanent transferees. Instead, a typical approach is to simply provide a cash stipend to the permanent transferee with the suggestion to use the funds to find a local tax provider to help them with their tax matters in their new country.