1. “On Deck Circle” Global Uncertainty: How to Successfully Manage an Immigration and Tax Program in 2017

2. “On Deck Circle” Global Uncertainty Panelists
Stephanie Lewin, Global Immigration Attorney, BAL
David Zydek, Partner, Global Mobility Services, KPMG ∙

3. Current Immigration Landscape
UNITED STATES 1
EUROPEAN UNION 2
UNITED KINGDOM 3
ASIA 4

4. Current Tax Environment
The Challenge to Stay Compliant
Mobile Employees
Jurisdictions Need Money
Taxing & Immigration Authorities

5. US Immigration: Fast and Furious
EXECUTIVE ORDERS: Travel Ban
LEAKED: H1B lottery, L-1 site visits, F-1 OPT, H4, Green Card Priority Dates, B-1/B-2, case processing
DHS and DOS ACTIONS
H1-B PREMIUM PROCESSING SUSPENSION
ORDERS
SECURITY
APRIL 3

6. US Tax Reform
For the first time since 2006, the Republican Party (GOP) will control the House, Senate, and White House simultaneously
The urgency for tax reform has increased for a number of reasons:
The United States now has the highest statutory corporate rate in the Organization for Economic Co-operation and Development (OECD)
Gross domestic product (GDP) growth continues to lag behind historical averages
The U.S. manufacturing sector continues to decline
The expectation is U.S. tax rates will be reduced, however, effective date of change is still unknown
“Heart and soul” is a proposed border adjustment tax

7. Financial modeling and early planning is key!
US Tax Reform (Cont.)
U.S. outbound assignments may become more expensive
U.S. inbound assignment may become cheaper
Tax equalization policies may be impacted
Need to adjust cost accruals for assignments
Deferred compensation planning (e.g., qualified plan contributions, annual bonuses, equity, severance)
Accelerate compensation expense deductions
Defer distributions
Financial modeling and early planning is key!

8. UK Immigration: Methodical and Consultative
BREXIT: ARTICLE 50 01 02
SCOTTISH REFERENDUM: SECTION 30 04
PROCESSING CHANGES
EU NATIONALS: RIGHT TO REMAIN UNCHANGED UNTIL BRITAIN FORMALLY LEAVES THE EU 03
TIER 2 CHANGES 05 06
CONSULTATION

9. UK Brexit and Tax Implications
Tax planning considerations for Brexit
Changes to assignees’ net pay
Modified PAYE implications
Non-UK country wage reporting
Social Security

10. European Union: Election Season
Possible Scottish Referendum

11. France Elections and Tax Changes
With the enactment of the French Finance Law, the French government is planning to introduce a withholding tax system on professional income as of January 1, 2018
Will apply to French source compensation whether paid by French or Foreign entities
Legislation includes a special tax credit called CIMR (impôt exceptionnel de modernisation du recouvrement)
This tax credit will cancel, at least in part, the French income tax due on non-exceptional employment income (e.g., base salary)
Tax equalization policy considerations
Outcome of French elections in May could mean changes to this enactment!

12. Asia: Mixed Bag Singapore: China: Overhauling work permit system
Watch list (250 employers): must favor local workers
Extended processing time (EP, DP, LTV)
China: Overhauling work permit system
Effective April 1
One work permit; three categories A,B,C
Shanghai relaxing rules for foreign talent
Invitation letter not required for Z work visas

13. Global Tax Policy and BEPS
The Organization for Economic Cooperation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) project is perhaps the most far reaching change ever seen in global tax policy
Action 13 – Country-by-Country (CbyC) and its impact on U.S.-headquartered companies
CbyC reports require reporting of “employees on a full-time equivalent basis”
CbyC reports may be exchanged with other tax jurisdictions
Action 7 – revises definition of how an individual can establish a taxable presence for their home country company in a foreign country
How is your company planning for these changes?

14. Managing a Global Immigration & Expatriate Tax Program

15. Immigration: Wait and See v. Proactive
Determine reliance on foreign workers (H1B, Tier 2)
Industry (Tech, Oil & Gas, Pharma, Manufacturing, Retail)
High Skilled v. Low Skilled
Policies (supporting Permanent Residence, pros/cons)
Hiring Practices (Employment v. Immigration Law)
C-Suite v. Global Mobility needs (future v. day-to-day)
Internal Communications
Voice concerns (Government Affairs)

16. Tax: Mobility Stakeholders and Their Needs
C Suite
Talent Management / HR Metrics
Employee and Manager Self Service
Assignment & Tax Equalization Policy
Compensation Planning
Individual Tax Planning
Pension & Social Security
Career Management
HR / C&B
Expatriates
Compliance
Payroll Administration
Shadow Payroll
Compliance
Cost Management
Accruals Management
Risk Management
Tax & Finance
Payroll

17. Expatriate Tax Program Management – Leading Practices
You can’t read everything!
Leverage your key stakeholders and vendor partners
Analyze potential impact of major legislation changes before they become final
Take advantage of advance notice of proposed changes before they become effective
Model potential outcomes
Make preparations before change happens!

18. Resources Internal and External Experts Twitter Industry Associations
AILA
Worldwide ERC
SHRM
News Alerts
Brexit Bulletin
Global Trends Report
White Papers
Benchmarking
Base Erosion and Profit Shifting (BEPS) – Multilateral Instrument for Worldwide Tax Treaty Updates Released by OECD
On 24 November 2016 the OECD posted to their website the long-awaited Multilateral Instrument (MLI) for implementing tax treaty-related measures set out under the G20/OECD BEPS Project. With over 100 jurisdictions having been involved in the MLI negotiations it is anticipated that in excess of 2,000 double taxation agreements (DTAs), out of the 3,000 plus in existence globally, will be updated.

19. Questions and Thank You!