International Considerations In Research Administration Presented by: Kathryn Homa, Associate Director, Global Support Services Anshu Tiku, Associate Director, Tax & International Operations

Why Going Global Makes Sense Solve broad global problems requiring interdisciplinary approaches and inter-institutional collaborations (e.g., energy, climate, computing, etc.) Broad emphasis by funders to increase collaborations into international and multidisciplinary arenas Expand appeal to international students and increase student exchanges Diversify research ideas and increase global buy-in for results and solutions Broader study populations

Areas To Be Covered Business, Tax, Accounting, and Operational Issues Review of activities with in-country implications Legal Issues and Governing Law Employment Laws Where and When to Get Help Proposal and budgeting!!

Business, Tax, Accounting, and Operations Typical “Triggers” for a more formal presence or registration Opening an Office or creating a Permanent Establishment (“PE”)/Presence PE status is generally determined by Treaties between the countries or OECD model treaty language Vary country by country Can be individual, corporate, or both Buying or leasing real estate Operating in a country long-term Signing agreements in country Hiring employees or long-term contractors Generating income/revenue Opening bank accounts

Business and Accounting Issues What can be charged back to the funder? Is prior written approval required? Indirect costs and taxes F/X considerations Local purchases and payments Vetting vendors Translators, interpreters, etc. Human subjects Foreign subrecipient monitoring

Operational Issues Contracts and agreements Safety and security IT Local licenses In-country communication with home office Data security and integrity

Our rules, their rules, international rules and guidance – All Apply!! Governing Law US institution bound by US laws However, US tax-exempt status may not be recognized in the foreign jurisdiction Operations in foreign jurisdiction subject to local laws Impact of “Customary Practices” Universal laws and principles (OECD, UN, etc.) Our rules, their rules, international rules and guidance – All Apply!!

Most Common Area of Non-Compliance/Risk Employment Laws Most Common Area of Non-Compliance/Risk US personnel working in foreign jurisdiction Immigration and visa rules Treaty exemptions (when available and applicable) Agreements with local government (US institution or funding agent) Hiring locals Labor and employment laws Benefits provisions and reporting Payroll reporting and withholding for income and/or social tax Use of PEOs and their associated costs

Other Regulations and Laws Privacy Rules vary widely location to location Banking restrictions on non-residents and capital requirements Human subject research and clinical trials outside the U.S. Cultural context , IRB review, and local regulations that apply Common Rule Foreign Corrupt Practices Act Be mindful of customary practices and who is a government official Local anti-bribery laws Review by local ethics (IRB) committee In country sponsor or researcher responsibilities may differ Import and Export laws (both US and the foreign jurisdiction) Anti-boycott laws Other Examples ??

Getting Help at Penn Each program, country, or situation is different Global Support Services Artemis Koch, Executive Director avkoch@upenn.edu Kathryn Homa, Associate Director khoma@upenn.edu Key International Contacts in University Offices OGC Risk and Insurance Finance Tax and International Operations (Anshu Tiku, atiku@upenn.edu) Technology and Privacy Office of Research Services