E-Magazine_CONVINUS Global Mobility SUMMIT 2022

+++Celebrating our 20. Anniversary with you+++ 20 years ago the Global Mobility journey started for us and sooner or later you became an important part of this journey. Therefore we, CONVINUS, would like to thank you very much and personally. CONVINUS would not be your partner for challenging and complex topics if we were not always one step ahead. To ensure this, we are in constant contact with our global network and would like to introduce our strong partner network to you on the occasion of our 20th anniversary: - Free access to our Global Mobility SUMMIT 2022 (digital), i.e. two days of bundled international know-how of our CONVINUS team as well as our partners. - Benefit from our network and ask specific questions. - Share your free access with colleagues. We are looking forward to getting to know you as well.

PROCEDURE FOR

PROCEDURE FOR DETERMINING THE TAXATION OF SHORT-TERM EXPATRIATES 22 convinus.com

PROCEDURE FOR DETERMINING THE TAXATION OF SHORT-TERM EXPATRIATES An employee from Hungary (tax burden: 15%) will not allow himself to be posted to Austria (tax burden: 55%) and then take over the tax difference himself. If the tax burden for the employee in the country of assignment is higher than in the country of origin, the employer usually takes over this additional burden according to the above-mentioned principle. This represents a non-cash benefit for the employee, consequently this amount must still be extrapolated accordingly with the resulting tax and social security costs. Summary and checklist In summary, here is a checklist for examining the taxation of short-term assignments: I. Gather all the necessary factors to enable an examination of the facts of the case. II. Is there a double taxation agreement between the country of residence and the country of assignment of the employee? 1. No double taxation agreement exists I. Check the tax regulations in the country of assignment II. Check for possible tax exemption in the employee's country of residence if there is a tax burden in the country of assignment III. If there is an additional tax burden, set up a tax compensation scheme for the employee. IV. Examine the establishment of a permanent establishment in the country of assignment. 2. Double taxation agreement in place I. Check according to the above decision tree a. Result: taxation in the employee's country of residence; no further steps necessary at employee level. b. Result: taxation in the country of assignment; set up tax equalisation model for the employee; check how taxes must be paid in the country of assignment and how double taxation in the country of residence can be avoided. II. Checking the establishment of a permanent establishment in the country of assignment With the help of these individual steps and the decision tree, most short-term assignments should be easy to classify and a clear overview of the country in which the employee will be liable for tax should be created. 23 convinus.com