Coffee & Consulting: Best Practice in Secondment Package Creation

Process tax equalization

Process tax equalization Before the assignment During the assignment After the assignment • Clarification of tax liability in the host country • Definition of the method • Calculation of the hypothetical tax in the home country • Communication to employees • Contractual agreements Hypothetical tax home country • Monthly deduction of hypothetical taxes in payroll accounting • Settlement of taxes in the country of assignment • Declaration of the additional taxes assumed by the employer in the country of assignment (and home country) (subject to tax and social security contributions) Effective tax host country - equlisation • Review of the hypothetical tax deduction and possible correction according to days of employment / salary amount (tax reconciliation) • Exact calculation of the additional taxes assumed by the employer for final reconciliation, including settlement of social security contributions Final calculation Coffee & Consulting: Secondment Package Creation Working from home (teleworking) – what the future regulation will look like. – June 20, 2023 COPYRIGHT © CONVINUS 14