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

2. 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

3. 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!!

4. 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

5. 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

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

7. 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!!

8. 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

9. 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 ??

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