that countries would open up their borders and make travel easier, but since Brexit and Covid this has not been the case. There was also a greater demand for relocation companies to provide procurement departments with detailed sustainability criteria.
THE CHALLENGES & REWARDS OF HYBRID WORKING James Smith, tax director, RSM UK, was one of the attendees who contributed his expertise
to
discussion. “Working
may be created in that other location resulting in corporate filing requirements. This could be corporation tax filing, the creation of a payroll withholding requirement or the movement of social security from one jurisdiction to the other.” He said it was important to
the internationally
can have many advantages for employers; a larger talent pool, employee engagement and talent retention, but caution should be taken as to the risks,” he said. “An employee working for the benefit of an employer outside the country in which they are working or live can give rise to corporate obligations. A Permanent Establishment (ie a corporate presence) of an entity
“ Raised rental costs have been a huge challenge for families, and there are no longer the very comprehensive relocation packages available that we saw pre-pandemic.”
MARY BIDDLECOMBE, TASIS THE AMERICAN SCHOOL IN ENGLAND
important to plan for hybrid working, because otherwise there was the risk that employers and employees could find themselves with unexpected compliance obligations and legal headaches, not to mention the challenges of tax/social security being in the ‘wrong’ country. “This can lead to significant
costs for both, but also importantly test the limits of employee engagement and turn what might have been a great benefit into an employee relations issue,” he said. Understanding your employees
and where they are and what they are doing is key to ensuring that you are compliant regarding tax and social security and what to consider before setting up or sending an assignee to a jurisdiction. “Limiting time an individual
can spend in a foreign jurisdiction, where the work can be undertaken or the type of duties which they’re able to do can mean the difference between there being compliance exposure or not,” he said. “If the move is business critical, mitigation might not be the desire, rather ensuring the employer remains compliant takes precedence. Engaging with your advisor on structuring international.”
WHAT ORGANISATIONS NEED TO KNOW ABOUT DIGITAL VISAS Olga Nechita, director at Fragomen, highlighted the new issues around visas and changes to the system. “The acceptance of remote
workers in the workforce has grown exponentially over the last three years and over 30 countries and territories launched digital visa pathways as a consequence,” she said. “However, the number of jurisdictions offering remote work visas/digital nomad visas has levelled off over the last six months
62
and related immigration laws have been codified and clarified.” Looking further ahead, countries
with disappointing results from their remote work policies will likely revise and restrict them through increased eligibility requirements such as higher minimum salary levels, shorter authorised stays, or cancel them altogether. “Additionally, governments’
scepticism of growing remote workforces may
increase
inspections, audits and border interrogations for digital nomads and those entering for remote work,” she said. Olga highlighted some new
challenges which are emerging in global mobility, including increased compliance efforts and governmental agency communication ensuring compliance with immigration laws. “There is increased monitoring
and/or regularisation of business and work activities under visitor status both in the UK and Europe,” she explained. “There has been a rise in the practice of conducting business activities under tourist visas – whether by dedicated programmes or common practice – which has triggered government monitoring of such activities.” As a result, business travellers
need to be aware of the electronic recording of the length of time spent in a country by governments. “The digital transformation is
continuing to pick up pace around the world,” she said. “Systems are becoming more sophisticated
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