Meeting Agenda
Demystifying the Expatriate Assignment Process
Carol-Ann Simon, Perkins & Co
Emerging International Relocation Program
Issues, Risks and Best Practices
Gary P. Tober, Garvey Schubert Barer
Global Assignment Policy Overview
Joseph Willis, Nike
Improve Effectiveness of Global Mobility
Jennifer Fu, Banfield/Mars, Inc.
Destination Service Provider
Delayne Romson, International Expatriate Consulting, Inc.
Carol-Ann Simon
Perkins & Co, Shareholder
Carol-Ann is a tax shareholder and director of our Expatriate Tax practice group. With over
25 years of experience, in the US and Canada, Carol-Ann has the unique ability to
understand the dual-country implications of a foreign assignment. Her expertise includes
coordinating global tax compliance, tax effective compensation, cross border planning,
employee relocation issues and tax equalization policies. Her clients have included
hundreds of international businesses ranging in size from family-owned to large
multinational companies.
Most recently, Carol-Ann obtained Certifying Acceptance Agent (CAA) status with the IRS, allowing her to assist
foreign nationals in the applications for Individual Taxpayer Identifi cation Numbers (ITIN). Carol-Ann’s
certification will streamline the process of obtaining an ITIN as she will be able to locally review the original
documents necessary and certify the application for the IRS.
Prior to joining Perkins & Company, Carol-Ann was the partner in charge of BDO Seidman’s Expatriate Tax
Services group and served as BDO Seidman’s U.S. liaison to the BDO International Center of Excellence for
Expatriate Tax Services. In addition to her time with BDO, Carol-Ann developed her abilities with several of the
top four accounting fi rms in the US and Canada, including Ernst & Young.
Demystifying the Expatriate Assignment Process
December 6, 2011
Portland Relocation Council Meeting
Agenda
• Outbound Expatriates
– How to determine cost differentials
– Elements of the assignment contract
– Estimating the overall cost to the company
– How to Pay
– Certificates of Coverage
– Tax equalization
5
Agenda (Cont’d.)
• Inbound Expatriates
– Local hire vs. temporary assignee
– Split payroll considerations
– Tax implications of various immigration visas
• International Tax Updates
6
Outbound Expatriates
7
Cost Differentials
• Most temporary assignments abroad attempt to
keep the assignee economically neutral.
• Measure four categories of cost differentials:
– Housing
– Cost of living
– Transportation
– Income taxes
8
Cost Differentials (Cont’d.)
• Helpful if you can obtain independent data
for the first 3 categories
• There are specialized cost information
providers that can supply this for you.
9
Elements of the Assignment Contract
• Who is the employer company?
• Is the employee “on loan” to host location?
• Assignment length can have tax
implications. Key cut-offs:
– 6 months
– 1 year
– 5 years
10
• Keep base salary “pure”
– Denote allowances separately
• Method of payment can make a tax
difference (e.g. housing)
• Description of your tax equalization process
– Assignee agrees to hypo tax withholdings
– Tax compliance process & provider
11
• Assignee signs agreement that all tax
advances you make on their behalf are
considered debt to the company until settled
through the tax equalization process.
• Make sure all terms are agreed before the
plane leaves.
12
Cost to the Company
• Determine all potential assignment allowances and
expense reimbursements
– e.g. Home leaves, HHG/flights, temporary living
(front & back end), visas, “look see” trip, storage,
language training, schooling
• Data used by tax services provider to calculate all
home & host taxes plus gross-ups
• Total costs can be used to obtain assignment
approvals and set up cost accruals in budget.
13
Certificates of Coverage
• US expatriates on temporary assignment for their US
employer can be exempt from host country social security,
and stay in US FICA/Medicare System.
• Typically only lasts for assignments up to 5 years.
• US has agreements w/ 24 countries, more pending.
• Exemption from host country social security can be a
signifcant savings for employer
– Employee/employer portions, other countries’ systems
can be much higher amounts
• Apply online
https://secure.ssa.gov/apps6z/coc_db/allforms.html
14
How to Pay
• Consider offering a “split” payroll. Some pay in the US,
some from host location. (This will help reduce exposure to
currency fluctuations.)
• Also helps to manage home country responsibilities, such
as pension contributions, social security taxes,
• Suggest assignee set up an account with an international
banker, to facilitate movement of funds from home to host.
Note – will require some manual information gathering
for payroll reporting in home and host locations.
15
Tax Equalization Policy
• Most companies have this as a companion
to their relocation policy.
• Philosophy is that assignee is “no better or
worse off” from a tax point of view
• Some companies are tempted to offer
“protection” instead – assignee is “no
worse off”.
16
• Disadvantages
– Sets precedent
– Tax benefit hard to predict
– Benefits will differ between employees
– Impedes mobility
17
Inbound Expatriates
18
Local Hire
• Many employees from abroad treated as local
hires here.
• US tax rates are often lower, salary grids often
higher than home country.
• Concept of tax equalization does not translate well
in inpat scenarios – it’s a “US-centric” concept.
• Not exempt from FICA/Medicare unless have a
home country certificate of coverage
19
Tax Implications of Various Immigration
Visas
• Most aliens working in the US with a non
immigration work visa are fully subject to
US income tax and FICA/Medicare tax
(unless exempt by Totalization)
20
Special Rules
• J-1 Trainee
– If paid from abroad, exempt from
federal/Oregon income tax.
• F-1, M-1, J-1, Q-1
– Exempt from FICA/Medicare, unless they
have taken steps to be considered resident
aliens.
– Includes F-1 OPT (Optical Practical Training)
– Working spouses not exempt
21
International Tax Updates
China
• Income tax rates have increased as of Sept. 1
• Social tax regime will now be applied to foreign
employees for the first time
• Effective Oct. 15? Implementation?
Netherlands
• Tax relief for expats (aka the “30% ruling”) will be harder
to obtain
• Specific expertise test hard to meet for younger workers
• Cross border commuters ineligible
22
Updates (cont.)
USA
• New FATCA form 8938 for 2011
• New foreign asset reporting form for individuals
• All foreign financial assets – goes beyond foreign bank
account reporting
• Large penalties for failure to file
23
Questions?
24
Gary P. Tober
Garvey Schubert Barer, Shareholder
GARY P. TOBER, a shareholder and member of Garvey Schubert Barer’s tax practice
group, is involved in tax and business planning for U.S. and foreign corporations,
partnerships and individuals, emphasizing the tax aspect of cross-border business
operations and investments transactions. Mr. Tober regularly presents seminars on
international tax topics to certified public accountants; teaches graduate school courses in
international taxation at the Golden Gate University; speaks at seminars on international
commercial agreements; chairs seminars on international law and taxation; and lectures on
international topics at various professional education programs. He is admitted to practice
in the State of Washington. Mr. Tober earned his B.A. at Denison University, his J.D. at the
University of Toledo Law School, and his LL.M in Taxation, at Washington University School
of Law.
Portland Relocation Council
Emerging International Relocation Program
Issues, Risks and Best Practice
December 6, 2011
Gary P. Tober
Garvey Schubert Barer
Portland, Oregon and Seattle, Washington
GSBlaw.com
Inadvertent Corporate Risks Associated With
Foreign Relocation of Employees
I.
Foreign Tax Nexus
A.
Corporate Tax Obligations in Host Jurisdiction
B.
Exemption Provided by Income Tax Treaties
II. Social Security Taxes
A.
Totalization Agreements
GSBlaw.com
28
Inadvertent Corporate Risks Associated With
Foreign Relocation of Employees
III. Corporate Implications of Employee Tax Obligations
A.
B.
Tax Filings
1.
U.S.
2.
Foreign
Tax Withholdings
IV. Other
A.
FBAR
V. Legal Liability
GSBlaw.com
29
Income Tax Treaties
1. Business Profits - Baseline Definition:
The business profits of an enterprise of a contracting
state shall be taxable only in that state unless the
enterprise carries on business in the other contracting
state through a permanent establishment situated
therein. If the enterprise carries on business as
aforesaid, the business profits of the enterprise may be
taxed in the other state but only so much of them as is
attributable to that permanent establishment.
GSBlaw.com
30
Income Tax Treaties
2. Threshold Requirements is the Existence of an
Enterprise.
a. Almost any economic activity carried out by a resident of a
treaty country creates an enterprise.
3. Business Profits Generally Means Income Derived
from any Trade or Business
a. No direct counterpart in U.S. domestic tax law
4. Only Business Profits Attributable to a Permanent
Establishment will be Subject to Tax.
a. Income from active business operations
GSBlaw.com
31
Income Tax Treaties
1. Permanent Establishment - Baseline Definition:
For the purposes of this Convention, the term
“permanent establishment” means a fixed place of
business through which the business of an enterprise
is wholly or partly carried on.
2. If a U.S. company lacks a permanent establishment in
the other treaty country, business profits derived in the
treaty country will not be taxed by the treaty country.
GSBlaw.com
32
Income Tax Treaties
3. Criteria for Permanent Establishment
a. Fixed place of business through which a resident of a treaty
partner engages in industrial or commercial activity
1)
Facilities
a)
b)
c)
Place of management
Branch
Office
i.
Simenon v. Comm’r, 44 T.C. 820 (1965) – Home office
maintained in U.S. by French author resulted in P.E. under
U.S.-France income tax treaty
GSBlaw.com
33
Income Tax Treaties
d)
Factory
e)
Workshop
f)
Place of extraction of natural resources
g)
Building site – depending upon length of project. Required
length varies from six months to two years depending upon
treaty.
2) Exclusions
a)
b)
c)
d)
Storage facilities
Goods to be processed by another enterprise
Purchasing goods or collecting information
Activities of a preparatory or auxiliary character
GSBlaw.com
34
Income Tax Treaties
b. Permanent Establishment by Attribution
1)
Degree of authority of agents (i.e., employees are agents of
their employer)
a) Permanent establishment results if agent has general
authority and power to contract
i.
b)
No permanent establishment if agent is broker or
commission agent and independent
i.
2)
If agent’s activities are limited to exempted activities no
permanent establishment is created
Independent agent is one who is neither an employee nor
under the day-to-day control of the principal
Handfield v. Commissioner, 23 T.C. 633 (1955) found that U.S.
distributor of postcards was filling orders from a stock of
merchandise and thereby created a permanent establishment
for a Canadian citizen.
GSBlaw.com
35
Income Tax Treaties
c.
Non-fixed permanent establishment
1)
Rev. Rul. 56-165, 1956-1 C.B. 849, holds that representatives of
a French company who traveled continuously for two years in the
United States had a permanent establishment, notwithstanding
that the corporate representatives were merely demonstrating
and taking orders for machinery.
GSBlaw.com
36
GSBlaw.com
Joe Willis
Nike, Mobility Manager
Joe joined Nike as the Americas Mobility Manager just last October. Prior to Nike, Joe was
shoring up his Global Mobility experience at Broadcom where he served as the Global
Mobility Program Manager and prior to that at Sony Pictures Entertainment as the Sr.
Manager of Global Mobility. Joe’s working background also includes the MI Group,
Children’s Hospital of Orange County and British Airways. He graduated from the
University of California, Los Angeles with a B.S in Applied Geophysics and Space Physics.
GSBlaw.com
38
Global Human Resources | Global Mobility
Global Assignment Policy Overview
Joseph Willis, CRP, GMS
December 6, 2011
Global Human Resources | Global Mobility
Global Assignment Types
• Business Trip
• Duration: < 3 Months
• Not treated as an expatriate assignment
• Short Term Assignment
• Duration: 3 – 12 Months
• Skill acquisition/personal development OR project assignment with defined end date
• Fewer expatriate allowances
• Developmental Assignment
• Duration: 3 – 24 Months
• Skill acquisition/personal development/global experience
• Fewer expatriate allowances
• Long Term Assignment
• > 12 Months
• Perform a job/career development/transfer of skills/global experience
• Traditional expatriate allowances
• Dual Career Assignment
• Both spouses are employees on assignment
• Some expatriate allowances are shared
40
Global Human Resources | Global Mobility
Expatriate Compensation
• Balance Sheet Approach
• Transferee is kept whole compared to “stay-at-home” income
• Minimize impact of changing market conditions in the Host Country, such as exchange
rates, tax rates and housing costs
• Base Salary
• Employee remains on Home Country payroll
• Equal to the pay of domestic peers in comparable jobs at home location
• Transfer Premium
• Compensates for separation from home, relatives, and friends, and the particular
difficulties of international services
• Currently 12.5% of gross base salary, up to a maximum of US $12,500
• Cost of Living Adjustment (COLA)
• Differential to offset cost of goods and services at host location to maintain purchasing
power equal to domestic peers
• COLA is paid only if cost of goods and services at host location is greater than at
home location
• COLA updated quarterly on Feb 1, May 1, August 1 and Nov 1
41
Global Human Resources | Global Mobility
Expatriate Compensation (continued)
• Hardship Allowance
• Additional compensation if working under unusually difficult conditions
• Currently, 5% - 30% of gross base salary depending on location
• Revised annually
• Housing Norm Deduction
• Employee’s contribution to housing cost via payroll deduction
• Equals one-half of comparable housing in Home Country and consists of
non-equity mortgage payments and property taxes or rent, plus normal utilities
• Hypothetical Tax
• Payroll deduction roughly equivalent to “Stay-at-Home” tax withholding
• Calculated on annual gross base salary and other factors which affect
Stay-at-Home Tax (such as insurance and pension contributions)
• Hypo tax is not computed on transferee allowances
42
Global Human Resources | Global Mobility
Expatriate Compensation (continued)
One-Time Payments
• Relocation Allowance
• One half of monthly salary
• Intended to cover miscellaneous out-of-pocket expenses during relocation, ongoing
expenses throughout the term of the assignment and offset incidental costs
associated with the move back to the home location.
• Paid via Home Country payroll
• Spousal/Partner Allowance
• Intended for spouse/permanent partner to enhance interests, education or career
while away from home
• One lump-sum payment at the beginning of the international assignment.
• Additional payments may be made if assignment is extended.
• Paid via Home Country payroll
43
Global Human Resources | Global Mobility
Scope of Services – Home Country
• Payroll/Compensation
Administration
• Auto Loss-on-Sale or Lease
Break
• Policy Counseling
• Intercultural Training
• Visa/Work Permits
• Language Training
• Shipment/Storage of
Household Goods
• Immunizations
• Insurance (Personal Effects
and Personal Liability)
• AMEX/Expense
Administration
• Will Preparation
• Payroll
• SOS/Travel Assistance
• Tax Filing/Equalization
• Mail Forwarding
• Medical Benefits
• Personal Long Distance
Calls
• Property Management
• Temporary Housing/Car
Rental
• Employee Store Shipments
44
Global Human Resources | Global Mobility
Scope of Services – Host Country
• Policy Counseling
• School Search
• Visa/Work Permits
• Dependent Education
Assistance
• Temporary Housing
• Home Finding
• Language Training
• Intercultural Training
• Personal Long Distance
• Local Transportation
• AMEX/Expense
Administration
• Tax Equalization/Services
45
Global Human Resources | Global Mobility
Assignment Benefits
• Home Leave
• One home leave per year, after one year of overseas service for employee and dependents
• Up to $1,000 for car rental
• Intent of home leave is for employee to travel to home country to maintain business and
personal connections
• Employee may elect an alternate destination. Reimbursement provided for amount equal to
cost of airfare to Home Country.
• Rest and Relaxation Leave
• For employee and dependents assigned to hardship locations
• One R&R trip per year while on assignment
• Transferee selects destination
• 5 working days provided for R&R
• Forfeited if not used during the year and cannot be combined with home leave
46
Global Human Resources | Global Mobility
Assignment Benefits (continued)
• Relocation Assistance – Expatriation & Repatriation
• Dependent Education Assistance
• Children are eligible one year prior to the required starting age with a minimum age of 3
years (example: if required school attendance age in the Host Country is 5 years, Nike
would begin providing education assistance at age 4)
• Education assistance provided for accompanying children through age 18
• Reimbursement provided for the following education expenses:
• Tuition and/or registration fees
• Cost of school bus or daily public transportation to and from school
• Books
• Laboratory fees
47
Global Human Resources | Global Mobility
Assignment Benefits (continued)
• Housing
•
•
•
•
Temporary housing provided in Home and Host Country, if needed (up to 30 days in each location)
House-hunting trip may be provided, depending on Host Location Policy
Housing allowance is per Host Location Policy
Furniture, appliances, utilities are per Host Location Policy
• Transportation
• Per Host Location Policy
• Some countries provide transferee with a vehicle to drive
• Other countries provide a car and driver
• Intercultural Training
• Assistance with managing cultural adaptation and lifestyle adjustments due to transition
• Language Training
• Language lessons provided to transferee and eligible dependents to learn the official business
language of the Host Country
• Healthcare
• Global Health Plan – If Home Country coverage is not valid international, employee needs to be moved
to a Global Health Plan (Cigna International, Aetna Global, etc.)
48
Global Human Resources | Global Mobility
Questions
49
Jennifer Fu
Banfield/Mars, Inc.
Global Mobility & Immigration Manager
Zhiyan “Jennifer” Fu is a global mobility and immigration manager with 8 years of program
management experience in several multinational corporations including Nike Inc., Vestas
Wind System – Americas and Banfield/Mars, Inc. Her mobility experience covers relocation,
corporate policy alignment and process set up, immigration and visas, international tax
equalization program and social security tax management for expats and local to local
transferees. Jennifer grew up in China. After college with two B.A. degrees and having
worked for a couple years at Procter & Gamble, China, she came to the U.S. for graduate
school. Jennifer has a Master of International Management degree and GPHR; she has
worked in non-profit, governmental and corporate sectors in the U.S.
Improve Effectiveness of Global Mobility
The case of Mars Inc’s Corporate Mobility Program
Banfield Pet Hospital’s Parent Company
Mars, Inc. Global Mobility Mission Statement
Global mobility in Mars enables business
success and provides unique experiences
to enhance the lives of associates and
their family
4/8/2015
Zhiyan Jennifer Fu, Manager, Immigration Program
53
Mars, Inc. Global Mobility Guiding Principles
•
As a global business, international mobility is essential
for our future senior business leaders to be most
effective.
•
Global mobility policies should be a positive element in
helping to ‘attract, retain and motivate’ associates and
therefore need to be competitive, both internally and
externally.
•
Moves should contain a mutual benefit for the business,
the associate and their family. Moves will be
differentiated, based on the business need and associate
personal development. Appropriate care and support
will be provided.
•
Associates who are mobile will be recognised and
provided with enhanced opportunities to learn, grow and
achieve.
•
Clear and timely communication will be provided on all
aspects of a move to allow all parties to make an
informed decision and to clarify ongoing support.
•
The value of the global mobility programme will be
tracked and evaluated to ensure that it delivers business
value and long-term leadership development.
4/8/2015
As a global business,
international mobility is
essential for our future
senior business leaders
to be most effective.
• Communicate purposes
• Support corporate goals
• Expected impact
Zhiyan Jennifer Fu, Manager, Immigration Program
54
Global Mobility Framework
Career Development
Higher
Strategic
Target associates :
 High Potential associates (as per
identified development action in MDR)
 Personal Performance Matrix 5,7,8,9
 ‘Short -Term Assignment’ (3-12 mths)
 ‘Long-Term Assignment’(2-3 years)
Decision-maker:
Mobility Types:
• ‘Long-Term Assignment’ (3-5 years)
• ‘Permanent Relocation’ (>5 yrs)
• ‘Commuter’
Decision-maker:
• Recruiting President (with recommendation
from Global Talent Director)
Package:
• Enhanced package / support
Associate-initiated
Professional
Target associates :
Target associates :
Mobility Types:
Mobility Types:
 Associate-initiated moves which meet
business need for resource at reduced cost
High Professional (as per MDR)
Personal Performance Matrix 4, 7
• Recruiting line management
 ‘Short –Term Assignment’ (3-12 months)
 ‘Long-Term Assignment’ (c.2-3 yrs, max. 5)
 ‘Commuter’;’Permanent Relocation’(>5 yrs)
Package Cost:
Decision-maker:
Decision-maker:
Local terms, some relocation
support
global mobility
Lower
4/8/2015
Host
 ‘Permanent Relocation’
VALUE
• Recruiting GM (with recommendation
from Host/Home P&O)
Development Package Cost:Standard package
(Zones 5, 6); Lighter package ( Z7)
value
 Top roles
Corporate
Mobility Types:
Target associates :
• Recruiting GM (with recommendation from
Host/Home P&O)
Package: Standard package (all Zones)
Higher
Business value
Zhiyan Jennifer Fu, Manager, Immigration Program
55
Improving the Selection Process
Quality and “Fit”:
• Only consider candidates identified through the Mars
Management Development Review (MDR) and/or
endorsed by Home/Functional Sponsor
• Require cross-cultural assessment before the interview
• Use competency-based questioning to assess ability to
adapt to a different culture
• Understand any spouse/partner/family issues which may
block or undermine mobility before making final offer
4/8/2015
Zhiyan Jennifer Fu, Manager, Immigration Program
56
Improving the Selection Process
Business Sponsor: (Home or Functional Manager)
• General Manager, Business Head Level
• Only endorses high potential associates (HiPo) or
subject-matter experts (HiPro) – challenges other
moves!
• Holds briefings with associate before assignment
(delegates for junior assignees)
• Ensures a suitable role after the assignment
• Accountability in Sponsor’s annual objectives
4/8/2015
Zhiyan Jennifer Fu, Manager, Immigration Program
57
Repatriation – Roles and Support
• Regular ‘Traffic Light’ reports from Global Mobility Team GMT
Home People & Organization and line manager
• Proactive re-entry planning (particularly in last 6 months)
• Management Development Reviews (MDRs)
• Returning assignees factored into home budget
• Business trip back to Home unit in last 6 months
• Ensure re-entry ‘welcome’/debriefing / knowledge transfer
global mobility
4/8/2015
Zhiyan Jennifer Fu, Manager, Immigration Program
58
Streamlining Processes and Roles
GMT – Strategic
• Set strategy and policies
HOST – P & O
• Aid selecting right candidate
• Plan resources, biz cases
• Monitor recruit/selection
• Exception approvals
• Corporate governance
• Actively initiate and monitor
repatriation
• Reporting and tracking
• Vendor management
• Initiate assignment
• Track exceptions and report
• Arrange induction - external
• Annual pay/variable pay review
• Ensure expats on MDR agenda
• Support/Coordinate repat.
• Vendor management
4/8/2015
HOME – P & O
• Ensure GM/Functional sponsor’s
endorsement
• Educate ‘new sponsor’ roles
• Provide data to GMT
• Ensure expats on MDR agenda
• Annual pay/variable pay review
• Support Home / Functional
sponsor to repatriate/re-deploy
expats
Zhiyan Jennifer Fu, Manager, Immigration Program
59
Streamlining Global Service Providers
Managed by GMT in the U.S.
•Tax: one provider
• Relocation & Destination Services: One provider
• Immigration: One provider
Aligned one contact group
Aligned one online tool to collect assignee info.
Aligned service cost control and reporting
Aligned one location for history
4/8/2015
Banfield Pet PP Template
60
Program Managing Principles
1. Seek executive commitment to the policies/process
2. Flexibility: Documenting guidelines vs. Sticking to policies
3. Clear expectations for assignees:
1.
Verbal, written support
2.
Specific instructions
3.
Centralized exception management
4. HR’s strategic involvement: Consult with Global Mobility
Team once an opening is known/prior to discussions with
candidates
5. Avoid making promises to associates
6. Challenge ‘lazy resourcing’
7. Avoid negotiations over the package
8. Support assignees’ re-integration
4/8/2015
Zhiyan Jennifer Fu, Manager, Immigration Program
61
Questions and Discussions
4/8/2015
Zhiyan Jennifer Fu, Manager, Immigration Program
62
Delayne Romson
International Expatriate Consulting, Inc.
SCRP, SGMS
•Learned mobility and immigration in a corporate environment (Apple)
•Took that education and moved to a consultant status. Current projects at this time
include:
−Several Corporate and DSP Provider databases - design, develop and maintain
−Consultation on current or new Corporate International Mobility programs - several
corporate clients
−Industry Consultant/Project Lead for International or Immigration RFP design,
execution and program transition
−Corporate Mobility Manager for a Corporation managing all policy writing, process
design and global movement of all employees, including immigration.
Delayne Romson, SCRP, SGMS
International Expatriate Consulting, Inc.
delayne@ieconsult.com






Considered a “local expert” in the New
Country or location.
Provides a second opinion on housing and
other issues
Services and service descriptions will vary
from country to country.
Costs will vary from country to country
Always charged for outside of the U.S.
Issue: Finding the best DSP in the area you
are going to!
HHG
ST Temp
Hsing
Immigration
LT Temp
Hsing
Tax
DSP
Spouse
Asst
Language
Cultural
Training
HR + Relocation
Company

Preview Trips – (not always provided)

Final Move –
◦ Intake Form - The employee usually fills out this DSP
form that notes personal preferences
◦ Benefits list - Employer may note specific package
benefits and housing allowance, etc.
◦ Authorization to reside in the Country:
 Employee’s work permit and dependent visas
 Local Registration – could be tax, could be province
◦ Credit - If Company is not sponsoring housing, car or
school services or does not have a program to assist the
employee in establishing credit in the new country,
perhaps a list of recommended documentation that
could be useful from the previous country before move
takes place.


Immigration – In many countries the DSP can be
authorized to perform these services.
Home Finding/Home Search ◦ International –
 RENTAL housing search - takes EE out, reviews contracts, knows
school areas, commute times, etc.(1-5 days). Works with
Employer if LTIA contracts need to be signed and funded.
 Country may not have MLS type services
 Country/Employer may require DSP separate from Realtor
 Home Purchase –
 Company rarely covers home purchase but if they do, very specific
country fees are covered.
 Employee may or may not be connected to a realtor but is on their
own.
◦ U.S. –
 Renter Services charged
 Home purchase a home no charge to Employer

Orientation Services -Overview of the local area based on
work or school locations.
◦ International – always charged for services
◦ U.S. – Some form of this could included in rental and n/c for buyer

Settling In Services –

Children's Education Services –
◦ Application for all registrations (SSN), utilities, etc.
◦ International – Charged for all services
 School search based on age, special needs, location, transportation,
private or public schools.
 Usually private schools so the children can integrate back into the Home
Country system upon return.
◦ U.S. –
 DSP sometimes includes information in welcome packet
 Further search that requires applications, language, specific needs are
always charged for.

Language Services –

Transportation Services – Assistance with setting up
auto leasing or car and driver
◦ International – Usually offered and paid for employee and
spouse. Children are case by case.
◦ U.S. – Sometimes offered if English is second language
(ESL).
◦ International – DSP has the connections. Who pays is based
on the package.
◦ U.S. - based on travel department set up



Driving lessons – Sometimes required/needed!
Monthly housing support – hot line for assignees
(usually exec) that are in long term housing.
Other – Basically anything you can think of that you
need hired to have done in the New/Host Location
U.S. – DSP services tends to be deemed as
“less valuable” to incoming international.
 Home Sale/Home Purchase services declining.
 Private School fees – EE pays part if the
children were in a private school previously.
 Cultural Information – is not Cultural
Training.

 U.S.
tends to assume foreign national
may not need assistance here.
Connect for Questions
Carol-Ann Simon, Perkins & Co
csimon@perkinsaccounting.com, 503-221-7580
Gary P. Tober, Garvey Schubert Barer
GTober@gsblaw.com, 503-816-1415
Joseph Willis, Nike
Joseph.Willis@nike.com, 503-671-3524
Jennifer Fu, Banfield/Mars, Inc.
jennifer.fu@banfield.net, 503-922-5202
Delayne Romson, International Expatriate Consulting, Inc.
delayne@ieconsult.com, 866-417-8293