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5. Employee tax status and corporate strategy
The tax burden is an important factor for both the company and the employee. It is therefore essential to consider the tax implications of a secondment or expatriation, prior to departure. The company must seek to optimize these, especially as it may be required to assume the employee's tax liability.
Each state is free to set its own tax rules and to tax activities taking place on its territory, without necessarily taking into account taxes paid in another state. There is therefore a real risk that both states will seek to tax the activity, leading to double taxation. This is what the bilateral tax treaties signed by France with some 120 countries (see https://bofip.impots.gouv.fr/bofip/2509-PGP.html/identifiant=BOI-ANNX-000306-20180307...
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Employee tax status and corporate strategy
Conclusion
Bibliography
Websites
CFE – Caisse des Français de l'étranger https://www.cfe.fr
CLEISS – Centre des liaisons européennes et internationales http://www.cleiss.fr
Regulations
Law no. 76-1234 of December 29, 1976, art. 9: Dr. fisc. 1977, n° 3, comm. 44
Article R. 1221-10 of the aforementioned Labour Code, transposition of directive law no. 94-761
Article 1147 of the Civil Code created by law 1804-02-07 promulgated on February 17, 1804
Article 4 A of the CGI deals with tax domicile
Article 4 B of the...
Economic data
See figure 1 , which highlights the gap between life in London and life in Monterrey (Mexico). The main factors requiring financial compensation are the tense socio-political environment and safety risks.
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