When Deanna Rasmussen of LEGO Group was looking for a personal, tailor-made approach to expatriate tax advice she turned to Grant Thornton member firms and their expatriate tax solutions services.
Working in another country can be very complex and employers and employees alike need professional advice. Expatriate tax specialists from Grant Thornton firms provide expert services for both companies and individuals via more than 520 offices, in over 110 countries worldwide. They work with their clients to help ensure that the pitfalls associated with working abroad are avoided and that all appropriate planning opportunities are implemented effectively.
Grant Thornton firms offer a tailored service which is flexible and personal and addresses all needs, from setting up appropriate payroll structures to ensuring tax optimisation strategies are fully utilised.
The expatriate tax solutions team’s work with LEGO Group, one of the world’s largest toy manufacturers and winner of the “Toy of the Century” award, helps ensure that their employees are in full compliance with their filing requirements and the company minimises the tax cost of international assignments.
Deanna Rasmussen, global mobility consultant LEGO Group and Clive Fathers, head of expatriate tax solutions, Grant Thornton UK LLP.
Deanna Rasmussen, global mobility consultant of LEGO Group says, “Moving abroad to work can be a daunting experience for employees - not only the move itself, but the prospect of finding appropriate housing and schools. The last thing we want is our employees worrying about understanding local tax systems and spending time filling in forms.
“Working with our advisers at Grant Thornton has allowed our expatriate staff to concentrate on doing their real jobs. Our aim is that they can be fully up and running within a week of moving.”
International
Grant Thornton member firms now look after the company’s 65 executives who work abroad across the Americas, Asia and Europe.
“We’ve worked with Grant Thornton firms on expatriate tax issues in the UK, US and Denmark for two years now. We have a relaxed and laid-back approach as a company and we have found a team at Grant Thornton which we are very comfortable working with. While they are extremely professional, they deliver their work with a sense of humour, which suits our style,” says Deanna.
The work for LEGO Group includes completing tax returns for all expatriate staff as well as planning for forthcoming legislation and regulation. In the UK, Grant Thornton UK LLP is also undertaking a review of LEGO Group’s payroll processes and procedures, with a proactive approach to identifying and implementing cost-savings.
“Different countries around the world provide us with different challenges. The tax system in the US is particularly complex, as is the German system. Grant Thornton has helped us to unravel some difficult issues such as expatriate allowances,” Deanna explains.
Specific services provided by member firms include:
- preparation of tax returns
- payroll and compensation reporting,
- delivery and tracking
- tax equalisation
- comprehensive tax planning for long and short term assignments
- compensation planning to minimise income tax and social security liabilities
- tracking local tax developments
- employee communications and advice including pre-arrival and pre and post
- departure services
- establishing international tax policies for companies
- global employee incentive programme design including stock options plans
Co-ordination of home and host country tax returns can be a daunting task. Individuals working in another country need to consider whether tax has to be paid in the country where they are working regardless of where they are paid. Other important considerations include the withholding and reporting requirements in the home and host locations.
Employers need to ensure that they treat employees consistently, establishing consistent remuneration strategies and international assignment policies. Grant Thornton firms can also support companies in staying on top of local tax developments in different countries.
For further information concerning international taxation please contact your local office, visit www.gti.org or contact one of the section heads (see right column of this page).