In the latest episode of the xpath.Nexus series, titled “WFA with Richard Tonge, Rachael Manning & Vivek Agarwal,” industry experts gathered to discuss the growing trend of working from anywhere (WFA) and the associated global mobility challenges. The session, hosted by Madalina Andrei, a Global Mobility Specialist at xpath.global, focused on best practices, compliance issues, and the future of remote work. Here’s a breakdown of the key takeaways.
xpath.global is the first SaaS-enabled marketplace digital ecosystem in the global mobility sector. It connects local experts and professionals to corporate clients worldwide, offering specialized services such as immigration, taxation, and social security. This episode is the eighth in their LinkedIn Live series aimed at sharing industry best practices and fostering collaborative learning.
The COVID-19 pandemic has significantly accelerated the adoption of remote work, especially among knowledge-based organizations. While WFA (working from anywhere) offers numerous benefits, such as cost savings on real estate and access to a global talent pool, it also introduces complex challenges. These include compliance with various local regulations, particularly around taxation and social security.
The 183-day rule is a critical consideration for companies and employees in global mobility. It generally allows employees to work in another country for up to 183 days within a 12-month period without becoming subject to local taxation. However, the application of this rule varies depending on local regulations and specific conditions outlined in tax treaties. Both Tonge and Agarwal emphasized the need for companies to understand these nuances to avoid unexpected tax liabilities.
One of the significant challenges highlighted was tracking the number of days employees spend in different countries. Failure to do so can lead to unintended tax consequences, including permanent establishment risks. Manning shared that Manning Global uses IP tracking and other tools to monitor employee locations, ensuring compliance with local tax laws.
DTATs play a crucial role in managing tax liabilities for employees working internationally. These treaties help avoid double taxation by allowing taxes paid in one country to be credited against taxes owed in another. However, as Agarwal pointed out, the practicalities of claiming these credits can be complex, particularly in jurisdictions like India, where the tax system is highly litigative.
As companies continue to adopt hybrid work models, they must develop comprehensive policies that address tax, legal, and operational challenges. This includes defining the roles and responsibilities of both the employer and the employee in maintaining compliance with local laws. Manning and Tonge both stressed the importance of clear communication and documentation to navigate these challenges effectively.
The episode underscored the importance of staying informed and proactive in managing global mobility issues. Whether it’s understanding tax laws, tracking employee movements, or leveraging double taxation treaties, businesses must be diligent in their approach. xpath.global’s xpath.Nexus series continues to be a valuable resource for companies navigating the complexities of global mobility.
For more insights and updates on global mobility, follow xpath.global on LinkedIn and YouTube.
To learn more about xpath.global’s global mobility management system, book a meeting here: Book a demo – Human Resource Professionals – xpath.global
