workshop session 4 mobility today_global immigration updaes_satya prakash and steve rao

INSZOOM Immigration Conference 2015Empower Employees for Immigration Compliance

Copyright © 2015 INSZoom Immigration Conference

About the Authors: Stephen Rao & Satya Prakash

• Stephen Rao currently works for Sapient in Gurgaon, India. He is a Director – Regional Mobility Team (India & APAC).

• Satya Prakash currently works for Sapient in Gurgaon, India. He is a Senior Manager – Global People Movement.


Agenda

1. Assignment preparation2. Work permit and business visa requirements3. Documents required4. Challenges—Business Travel & Compliance5. Determining wages and or living allowances –

best practices, resource guides and law firm contacts if any

6. Tax treaties, double taxation issues 7. Social security contributions in home/host

country and the effect on compensation determination


Assignment Preparation

• Globalization has resulted in an increase in the number of individuals entering foreign countries to work at subsidiaries of multinational companies.

• Consequently, immigration requirements, relocation and individual income tax regulations are key issues facing employers and their employees as they plan an overseas business strategy.

• Careful planning is necessary in successfully transferring from one country to another; lack thereof can negatively impact an individual’s as well as their employer’s corporate needs.


Business visa requirements

A business visa typically enables an individual to engage in short-term business trips to the foreign host country. In general, permissible business activities may include:

• Participate in exhibitions, seminars or professional meetings, including sales meetings with potential customers.

• Sourcing and licensing agreements, solicit orders, provide product information, negotiate contracts, and to purchase goods or equipment.


Work Permits requirements

Each country defines permissible work activities somewhat differently and may have several categories of visas that permit work, often varying in type, requirements and/or duration. Some categories of authorized work visas may require labor market clearance to establish a shortage of host country employees, while others may be available only to those filling specific occupations or possessing certain skill sets.

In some jurisdictions a work visa may be supplemented or substituted by a residence and/or work permit issued by local immigration/ local labor authorities.


Work Permits requirements

In general, to qualify for work visas, employees and their employers are subject to the following conditions:

• A registered legal entity in the host country must sponsor the work visa.

• Generally, the employee must be paid the market wage, though this is not a universal requirement. The exact wage required will vary depending on the country’s immigration and/or employment laws.

• Some work visas are subject to numerical quotas.• The employee often will be required to demonstrate

that s/he has attained a certain level of education and/or experience.


Required documents

Short stay - Schengen visa application form - (PDF, 225.1 kb)

Long Stay Visa Application Form - (PDF, 28.4 kb)

Standard Visitor visaWork visas Tier 2 (general visa) Tier 2 (intra company)

Visitor visa (subclass 600)Temporary Work (Short Stay Activity) VisaTemporary Work (Skilled) visa (subclass 457Workers

China Visa info


http://www.diplomatie.gouv.fr/en/IMG/pdf/Formulaire_SCH_eng.pdf

http://www.diplomatie.gouv.fr/en/IMG/pdf/Long_Stay_Visa_Application_Form-2.pdf

https://www.gov.uk/standard-visitor-visa

https://www.gov.uk/browse/visas-immigration/work-visas

https://www.gov.uk/tier-2-general

https://www.gov.uk/tier-2-intracompany-transfer-worker-visa

http://www.border.gov.au/Trav/Visa-1/600-

http://india.highcommission.gov.au/ndli/vcs1001.html

http://www.border.gov.au/Trav/Visa-1/457-

http://www.border.gov.au/Trav/Work/Empl/Visa-options-comparison-charts

http://www.border.gov.au/Trav/Work/Work

http://in.china-embassy.org/eng/lsfw/qz/

Required documents

Business visa documents

Work Visa documents

List of Approved Travel medical insurance companies


Work– Tier 2 (general) Tier 2 (intra-company)

Visitor visa (subclass 600)Temporary Work (Skilled) visa (subclass 457)

Business and work visa documentsStep by Step guidance Visa Application service centerForm: Physical Examination Record for Foreigner(PDF)


Work Visa documents

List of Approved Travel medical insurance companies


http://www.india.diplo.de/contentblob/4002758/Daten/3548247/business.pdf

http://www.india.diplo.de/contentblob/3137364/Daten/5802539/employment.pdf

http://www.india.diplo.de/contentblob/4545450/Daten/5759731/InsuranceList.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/423699/2015_04_20_Visitor_Supporting_Documents_Guide_-_Final__2__-_CLEAN.pdf

https://www.gov.uk/tier-2-general/documents-you-must-provide

https://www.gov.uk/tier-2-intracompany-transfer-worker-visa

http://www.border.gov.au/Trav/Visa-1/600-/Visitor-visa-(subclass-600)-Business-Visitor-Stream-document-checklist

http://www.border.gov.au/Trav/Visa-1/457-/Document-checklists-Temporary-Work-(Skilled)-visa-(subclass-457)

http://in.china-embassy.org/eng/lsfw/qz/t917022.htm

https://www.visaforchina.org/web/guidance/StepByStep_questions.action?visacenterCode=DEL1&request_locale=en_US&site_alias=DEL_EN

http://www.visaforchina.org/DEL_EN/

http://in.china-embassy.org/eng/lsfw/qz/P020111101625627509354.doc

http://www.ambafrance-in.org/List-of-supporting-documents-to-be#business-visitor-7

http://www.ambafrance-in.org/Long-stay-visa-Highly-skilled

What’s newRecent French Labor Code amendments require employers to maintain additional records for timesheets, a copy of a letter appointing a legal representative who has access to the relevant employment documents in case of labor inspection. Both the sending employer and host company may face fines if they do not abide by the new requirements.

Per the Minimum Wage Act implemented in Jan’15, allowances such as housing & transportation costs cannot be included in MWA determinations. Violations can result in fines of up to €500,000 or exclusion from public contract bids.

Strict New Immigration Bill Introduced to Curb Illegal Immigration and Work• Strict penalties for labor market rules violations • Rolling out Right to Rent checks • Additional powers on banks and police to undertake checks on individuals

and provide feedback to the UK Visa and Immigration service• Seize and search powers for immigration officers • Cancelation of leave extensions for failure to comply with a condition

attached • Language requirement for public sector workers• Introduction of an Immigration Skills Charge to all Tier 2 sponsored migrants.


https://www.gov.uk/government/news/right-to-rent-checks-introduced-for-landlords-in-england

What’s new

Immigration and tax authorities to begin data matching program for all visas from financial years 2013-2014 through the 2016-2017 to ensure compliance with registration, lodgment, reporting and payment of taxation and superannuation obligations under the tax laws.

Shanghai issues new rules to attract foreign science, tech workersUnder a pilot program, Talent (R) visas will provide a path to residency for high-level professionals cleared by Shanghai Labor and Social Security Bureau. The Shanghai Expert Bureau will issue foreign-expert permits valid for two to five years to long-term R visa holders based on the length of their employment contract.

Expired Visa Vignette: apply for a further 30 day visa under the category “Vignette Transfer” for which the fees are currently Rs. 12,810.

Starting November 2nd 2015, the Schengen-wide New Visa Information system (VIS) will be implemented for India.


http://ec.europa.eu/dgs/home-affairs/what-we-do/policies/borders-and-visas/visa-information-system/index_en.htm

Business and Travel Compliances

Immigration Compliance

Employment & Tax

Compliance

Employment Law Compliance

Employee Impact

Business reputation


Monitoring and Compliance

Pre-Travel Investigation – Is it Business Travel or Actual Work? Non permissible activities under a business visa may be classed as illegal work, acquisition of a visa under false pretenses or even illegal presence.

Develop Internal Company Policies - Knowledge of both the activities covered by the business visa and its limitations is therefore extremely important. Travelers may be arrested or debarred from future travel and organizations may be penalized by authorities.


Monitoring and Compliance

Before travel • Review Processes to Track Frequent International

Business Travelers.

• Incorrect or lack of permissions and/or documentation for international movement leaves your company open to fines, deportation of employee(s) and reputational risk resulting in loss of business and profit.


Int’l Travel Policy & Program Development

Understand—top travelers, key business locations, priority projects, etc. • Qualify exposure & explore obligations • Research Business Needs • Identify current resources

Mobilize—Educate Leadership on findings • Use discovery data – vendor support, business needs, leadership input, traveler profiles - to develop & implement processes

Integrate – Debrief &Formalize travel policy •Educate all employees

Technology – can we leverage systems that can help companies or travelers track their travel and work assignments?


Introduction to Expat Tax


ResidencyIncome sourcing

Domestic Tax Laws

Income Tax

Treaties

Basics for understanding Income tax


Resident

For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management, place of incorporation, or any other criterion of a similar nature, and also includes that State and any political subdivision thereof.


Compensation wage elements

Stay At Home Compensation may include:

• Basic Salary/Wages

• Special Allowances

• Bonus

• Deferred compensation

• Stock options/Share awards

• Group term life insurance

• Education Allowance

Assignment Compensation :

• Cost of living allowance

• Housing

• Family allowance

• Tax reimbursements

• Tax preparation fees

• Hypothetical tax

• Home leave / Flyback

• Foreign service premium

• Foreign taxes

• Relocation allowance


• Time Basis: compensation other than fringe benefits

• Geographical Basis: certain listed fringe benefits

• Alternative Basis: facts and circumstances

Sourcing of income

Time Basis

Base salary

Vacation pay

Incentive awards

Stock option income (special

rules)

Flexible compensation

Reimbursed club dues for a U.S.

club membership

Geographical Basis

Housing:

Education:

Local transportation:

Foreign Tax reimbursements:

US Tax reimbursements:

Hardship duty pay:

Moving expenses:

Cost of Living Allowance

Alternative Basis

Where income may be taxed on receipt

basis- India

Deemed disposition of Capital Asset


Tax Residency and Taxability

• Generally taxable on the worldwide income

Tax Residents

• Generally taxable on income from specific source

Tax Non-Residents

• Employment Income

• Personal Income (eg. Interest, Dividend, capital Gain)

• Deferred Income (eg. Pension, Gratuity, Equity, e

Tax Residency status impacts the taxation of an expatriate


Dependent Personal Services Article

Generally, personal services income is treaty exempt if the employee is in the host country :

for 183 days or less, and

Is not paid by an establishment in the host country,

and

The compensation is not borne by a

Permanent Establishment in the host country


Resident in 2 CountriesTreaty tie breaker article

Simplified extract of Teaty Tie Breaker Article

Where by reason of the provisions of paragraph 1 of this Article, an individual is a resident of both countries, then his status shall be determined as follows:

• he shall be deemed to be a resident in the country in which he has a permanent home available to him; if he has a permanent home available to him in both countries, he shall be deemed to be a resident only of the country with which his personal and economic relations are closer (centre of vital interests);

• if the country in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either country, he shall be deemed to be a resident only of the country in which he has an habitual abode;

• if he has an habitual abode in both countries or in neither of them, he shall be deemed to be a resident only of the country of which he is a national;

• if he is a national of both countries or of neither of them, the competent authorities of the both countries shall settle the question by mutual agreement.


Contact Info:

• John Stephen RaoSapient CorporationSector 21Gurgaon, Haryana 122016, INDIA+91 124 4167271 T+91 97111 89970 [email protected]

• Satya PrakashSapient CorporationSector 21Gurgaon, Haryana 122016, INDIA+91 124 4996000 T+91 96506 55801 [email protected]

• INSZoom.com, Inc.2603 Camino Ramon, Suite 375San Ramon, California 94583 USA925 244 0600 [email protected] Copyright © 2015 INSZoom Immigration Conference

mailto:[email protected]

