The increasing use of cross-border, intra-company transfers to meet global staffing needs is presenting new challenges to compensation professionals. Comparing the pre- and post-transfer compensation offering is generally straightforward when the move is domestic, but can become complex when two different countries are involved.
The Kingdom of Saudi Arabia recently announced that effective July 1, 2020 the current 5% VAT (Value-Added Tax) rate on almost all goods and services bought and sold by businesses within the Kingdom will increase to 15%. There are no changes to the list of goods and services to which VAT applies.
AIRINC’s Short Term Assignment (STA) survey confirmed that although the typical STA is defined as unaccompanied and 3 to 12 months in duration, many companies reported that their policies include significant flexibility around STA arrangements and entitlements.
News about extraordinary economic volatility in major emerging market countries such as Argentina, Brazil, Turkey, South Africa, and others has global mobility departments questioning whether they need to take any special measures to address the concerns of their international assignees.
Has your organization been faced with major currency devaluation issues in the past year?
Major and sudden currency re-alignments can pose some immediate and practical problems for mobility practitioners responsible for managing compensation arrangements for cross-border assignees.