AIRINC Global Tax Director Pat Jurgens joined Benivo’s 'The View from the Top' hosted by Brian Friedman on January 27th, providing a global mobility tax update, accompanied by immigration expert Julia Onslow-Cole, and special guest Ray Kirby, Senior Manager of Talent Mobility at Twitter. Click here to watch the video.
"Expat Pat" provided a global mobility tax update on the "Expat Concession" in Italy that is being extended to remote workers. The Italian tax authorities have recently issued tax regulations clarifying rules for the expatriate tax regime. If an employee takes up Italian tax residency after 1/1/2020, qualifying inbound employees can claim a 70% tax exclusion on employment income.
Basic Qualifications
• Must have been non-resident of Italy for at least the two prior years
• Must commit to be Italian tax resident for the following two years, working mainly in Italy. Therefore, do not utilize for assignments less than 24 months.
• Can use the expat tax regime for up to 5 years.
• Employees working for non-Italian employers can qualify for the expat concession. Effectively, remote workers that move their tax residency to Italy to work for an employer based abroad can qualify for the expat tax regime.
• Importantly, this also means that the non-Italian employer now has potentially created a corporate taxable presence in Italy, that Permanent Establishment is triggered. Great for the employee but maybe additional tax cost for the foreign employer.
Czech Republic (AKA Czechia) – Major Tax Reform has been approved and the new tax rules are effective Jan 2021. The new tax law include significant changes to how individual tax liabilities are calculated. These include abolishing the concept of “Super-Gross Salary” for employees and the Solidarity Surcharge of 7%. New progressive income tax rates will be introduced to replace these.
It is expected the net effect of these changes will be tax savings for most employees except potentially for higher incomes and should provide a boost to Czech economy impacted by COVID-19.
The show welcomed Ray Kirby, one of the Benivo Top 100 Mobility Professionals, who gave a brief background on his path to global mobility, discussed the importance of Mobility experts within the business, his move to Twitter, and his perspective on what 2021 will hold for Global Mobility.
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Listen | Partner | Deliver. For over 60 years, AIRINC has helped clients with the right data, cutting-edge technology, and thought-leading advice needed to effectively deploy talent worldwide. Our industry expertise, solutions, and service enable us to effectively partner with clients to navigate the complexity of today’s global mobility programs. As the market continues to evolve, AIRINC seeks innovative ways to help clients address new workforce globalization challenges, including mobility program assessment metrics and cross-border talent mobility strategy. Our approach is designed with your success in mind. With an understanding of your goals and objectives, we ensure you achieve them. Headquartered in Cambridge, MA, USA, AIRINC has full-service offices in Brussels, London, and Hong Kong. Learn more by clicking here.