Furthermore, from the compilation of the first gross-net calculations to the definition of the overseas salary and the filing of the last tax return (often up to 2 years after the employee’s return from overseas), taxes remain a crucial topic for the professional execution of an international assignment.

CONVINUS has developed the expertise that enables it to advise and accompany you every step of the way in all tax-related issues related to international assignments and global mobility. In all this, we receive support from our competent worldwide CONVINUS GLOBAL NETWORK (CGN).

Do not hesitate to contact us today about your concerns regarding income taxes during international assignments. We would be glad to help.

Tax equalization
Tax equalization is basically nothing more than a tax balancing calculation that allows employees to receive no more, but also no less net income during his international assignment than would be the case if he had not gone overseas.

In tax equalization, the additional tax burden is borne by the company. On the other hand, if the tax burden is lower during the international assignment abroad, the company gets to enjoy the tax advantages.

Companies utilize tax equalization in order to ensure that international assignments abroad are just as fair and transparent for all employees. Unlike tax protection, in which only the additional burden is borne by the company and any tax advantages are enjoyed by the employee himself, this results in there being no more attractive (e.g. Dubai or Russian) or less attractive (e.g. Germany or Austria) assignment destinations from a tax-related perspective.

CONVINUS regularly compiles tax equalization calculations for a wide range of country combinations for a large number of clients from numerous industries. Your tax equalization calculations and other tax equalization concerns are in good hands with us.

Tax optimization
In most cases, the payment of income taxes is unavoidable, but there still exist various forms of creative leeway to lower the total tax burden and to benefit from tax advantages for expatriates and foreign employees even as a company.

Thanks to our worldwide CONVINUS GLOBAL NETWORK (CGN), we are able to advise you competently and in a targeted fashion on worldwide tax optimization options. Furthermore, in the case of tax optimizations, we also pay attention to reciprocal effects with social security insurances and contract design in order to optimize the entire assignment package and to achieve the best possible results in an overall context for you and your employees.

If tax aspects in the international assignment process are taken into account early on, companies and employees may be able to profit from significant cost savings. Do not miss this opportunity. CONVINUS advises you pragmatically and competently on the overall tax strategy for international assignments that is best for you as well as on tax optimizations for specific country combinations.

Permanent Establishments
Permanent establishments as defined in tax laws oftentimes arise as an unwanted consequence of employees remaining overseas for extended periods of time. The unintended founding of permanent establishments results in numerous administrative and tax-related consequences, which should be avoided in most cases.

Hence, companies tend to avoid having permanent establishments overseas, or in cases where permanent establishments cannot be avoided, to found overseas subsidiaries from the very beginning.

CONVINUS provides you with pragmatic and competent support with the issue of permanent establishments in order to avoid far-reaching cost-related consequences for the company.

Contact us before (or during) your employees’ stay abroad so that we can evaluate the corresponding permanent establishments risk, and where necessary judiciously intervene in time so that costly administrative work and complicated overseas reporting can be avoided.