Workshop session 4 mobility today_global immigration updaes_satya prakash and steve rao

INSZOOM Immigration Conference 2015
Empower 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 preparation
2. Work permit and business visa requirements
3. Documents required
4. Challenges—Business Travel & Compliance
5. 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
Copyright © 2015 INSZoom

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 visa
Work visas
Tier 2 (general visa) Tier 2 (intra company)
Visitor visa (subclass 600)
Temporary Work (Short Stay Activity) Visa
Temporary Work (Skilled) visa (subclass 457
Workers
China Visa info

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 documents
Step by Step guidance Visa Application service center
Form: Physical Examination Record for Foreigner(PDF)
Work Visa documents
List of Approved Travel medical insurance companies

What’s new
Recent 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.

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 workers
Under 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.

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

Residency
Income
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 Countries
Treaty 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.

Questions?
Thank you,
Satya Prakash

Contact Info:
• John Stephen Rao
Sapient Corporation
Sector 21
Gurgaon, Haryana 122016, INDIA
+91 124 4167271 T
+91 97111 89970 M
srao21@sapient.com
• Satya Prakash
Sapient Corporation
Sector 21
Gurgaon, Haryana 122016, INDIA
+91 124 4996000 T
+91 96506 55801 M
sprakash24@sapient.com
• INSZoom.com, Inc.
2603 Camino Ramon, Suite 375
San Ramon, California 94583 USA
925 244 0600 T
Sales@inszoom.com Copyright © 2015 INSZoom Immigration Conference

Workshop session 4 mobility today_global immigration updaes_satya prakash and steve rao

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