Previously, we published PART I. Going Global: A Review of Critical Issues of Executive Mobility in our series on Global Executive Mobility Strategy. Here is Part II, another issue to consider when developing a Global Executive Mobility Strategy:
Immigration laws and visa requirements vary from country to country and the process of obtaining the appropriate visa or other permit in order to legally work in the host country can be challenging and time consuming. Initially, the duration of the assignment must be determined. Will it be for a short-term or temporary stay where the Executive is “seconded” to the host employer or will the assignment be for a long-term or indefinite stay? Most countries have entered into treaties or bilateral agreements which provide guidance regarding the applicable rules and arrangements regarding work visa or permit requirements, the tax treatment and recognition of income earned in each jurisdiction, and other important requirements. Accordingly, it is important that every contingency regarding foreign employment be analyzed by a host country attorney prior to the commencement of the assignment.
There are a multitude of issues that need to be considered in connection with the development of a Global Executive Mobility Strategy and a whole host of legal, tax, accounting and immigration law implications. This series of posts will highlights major issues to consider and suggests several potential Best Practices. However, this series is by no means exhaustive, comprehensive nor complete. The author strongly urges anyone involved with these issues to consult with qualified legal and tax counsel before committing to any course of action.
PART I. Going Global: A Review of Critical Issues of Executive Mobility
PART III. Going Global: A Review of Critical Issues of Executive Mobility – Tax Issues
PART IV. Going Global: A Review of Critical Issues of Executive Mobility – Employee Benefits and Executive Compensation Issues