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Finance Business Service

Increasing of tax risk abroad

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Flags on a glade

Companies are faced with a more thorough check of taxes, as more and more employees are working at the international level, 24 percent of enterprises reported a recent call by tax authorities.

According to PwC, minimization of the taxation and removal of profit of OECD aggravated attention on the risks connected with mobility of employees as the international organizations. The governments are aimed at providing profit that is assessed with a tax on the territories where business activities are performed.

31 percent of the companies say that they don't know the exact number of the employees working at the international level. 58 percent of the companies realize consequences of this tax provision and they don't know how to cope with such changes. Most of them understand that it is necessary to make changes before tax rules are put into operation.

According to the report, informally migrating population creates special problems and risks for employers. Nearly a quarter (23 percent) of respondents told that they didn't know who bears responsibility for business travelers and only a third of the companies worry about the taxes.

Ben Wilkins, the partner of global mobility told that global earnings sharply increase and when many people move by an unofficial method, they create big problems for their employers.

Author: Olena Kutova

senior lawyer of the Finance Business Service company

Сергей Панов
Author
managing partner
Finance Business Service