21 October 2013
BKR ITC Tax Breakout
Expatriate tax considerations
Mark Abbs
Agenda
 Introduction
 Expat tax services
 Hot topics
 Global coordination
Expatriate Tax Services
“Ideas on helping you broaden your services”
 Overview & benefits
 Suite of possible services
 Case study
Why do this?
 Number of expats expected to double by 2020
 Good business; 40% growth; $1m fees in 2 yrs
 Annuity work
 Senior relationships
 Big brand names
 Introductions to rest of firm
 Supports firms international offering
How to deliver the services?
•
Corporate client v. private client
•
‘Package’ existing tax services
•
Add new ones
•
Leverage specialists
•
Home country only v. multi jurisdictions
What could your expat tax services include?
1. Income tax:
Personal tax planning * tax returns
2. Employment taxes:
Payroll * employer reporting * cash flow management
3. Social security tax:
Planning * compliance
4. Tax policy:
Cost est calculations * assignment letter * policy
5. Permanent establishments
Case study: IFDS (Statestreet Bank)

Ex Big 4 client

Fees $75k - 12 months

UK – planning * tax calcs * policy * tax returns

Australia – tax calcs * payroll * tax returns

Ireland – payroll * tax returns

Future: Thailand; Lux; Canada; US…
Hot topics
 STBVs - Resident @ home / work overseas
 Big 4 clients
 Case study
Short term business visitors
1. Income tax?
 Treaty? 183 days – period? Economic employer? Recharges? Branch?
 Permanent establishment risks?
2. Payroll?
 Home / host location? Special agreements? Cash flow? Penalties?
3. Social security?
 EU; Treaty; Rest of world
4. Policy?
 Who pays the tax? Interest free loan? Tax return support?
Big 4 (ex) clients
 Big and small organisations
 Senior VIPs – CEO / CFO etc
 Small number of expats / senior VIPs
 Dissatisfied with the service
 Proactive? Responsive? Slow? Expensive?
 A genuine alternative
 Case study: listed mining company
Case study – Swedish listed company
 Global COO ->
 Tax
 Personal planning
 30+ expats – china, netherlands, us, uk etc
 Pension
 Payroll
 Benefit reporting
 Share reporting
BKR Global Coordination
“Ideas on using the BKR association to sell more work
/ deliver a better service”
Global coordination
 Direct or coordination
 BKR - brochure
 Joint marketing?
 Specific locations?
 Specific topics?
 Shared targets / clients
 Partner agreement - template
Case studies
 US clients
 10+ individual clients
 Fortune 100
 German bank – UK, France and Germany
 Technology – UK & Ireland
What next?
 Thoughts?
 Volunteers?
Contact us