arrangement is important for mitigating the corporate tax (permanent establishment) exposure for an employer in the other country. Pay-roll location, re-charge of the salary costs between employers, meeting the minimum-wage requirements for immigration compliance are some of the aspects to be considered while planning these assignments.
To sum it up, careful planning of assignments is required to ensure that neither the employer nor the employee land themselves in a situation of non-compliance of tax, social security and other regulations in any of the countries.
The writer is manager, tax & regulatory services, EY. Views expressed are personal