Avoid These Common Mobility Tax Mistakes

Employers are increasingly turning to mobile employees to fulfill their international staffing needs, but many companies fail to understand the complexity, costs, and compliance obligations that result from cross-border employment. The following are common mobility tax mistakes we encounter the most that are made by employers with mobile employees and tips for avoiding them.

What Does a Mobility Tax Services Firm Do?

A mobile employee moving from their Home country to an overseas location usually discovers fairly quickly that their tax situation has become far more complex as a result of the move. If the employee is moving from a low-tax location to a country with a high income tax, that employee may be facing a major increase in tax liability as a result of the move. Additionally, the mobile employee may encounter tax issues related to the sale or rental of their home, moving expenses for state reporting purposes, state residency issues, and a number of other issues they may not be prepared to handle on their own.

A Year of School – GTN Social Cause

The Global Tax Network (GTN) social cause was adopted as a way to inspire everyone to give back. We dedicate ourselves to a cause that the team is passionate about, and we come together to make a positive difference. Currently, we’re focused on education—an area that is incredibly special to the entire GTN team. Education has the ability to positively influence so many and can inspire all of us to do great things—not only in our professional lives, but also for our friends, families, and communities.

Are US Citizens and Green Card Holders Still Subject to Taxes in the US when Living Overseas?

If you have employees working outside the United States who are US citizens or permanent residents (i.e., a green card holder), these individuals will need to continue filing US tax returns to declare all of the income they earn in both the United States and their Host country. This requirement does not change if they are employed or paid from a non-US employer. Additionally, most of the tax rules that apply to taxpayers living in the United States will also apply to US persons operating overseas. The result may be that an overseas employee will be subject to tax in both the US and other jurisdictions.