GTN Mobility Tax Blog

The global mobility landscape is continuously evolving, often bringing significant changes that directly impact businesses, mobile employees, and the broader mobility industry. In our recent webinar, we explored key legislative, economic, and policy developments that could shape mobility programs in the months ahead. With new regulations taking effect and additional proposals on the horizon, staying informed is crucial for strategic planning. 

All US citizens and permanent residents must file federal income tax returns if they meet the Internal Revenue Service (IRS) filing threshold. The size of this threshold will vary depending on factors such as age, filing status, and type of income (e.g., income from employment or self-employment). For example, a single individual under the age of 65 would be required to file a 2024 US federal income tax return if their gross income exceeded $14,600. If the earnings came from self-employment, this same person would need to file a US federal tax return if their net earnings exceeded $400.

Tax season can be a challenging time for mobility managers who are responsible for ensuring their globally mobile employees navigate the tax filing processes seamlessly. With complex international tax laws and filings, it's crucial that both employers and employees stay informed and remain proactive when it comes to global mobility tax compliance.

As we look back on 2024, the global mobility industry experienced many changes, including an increase in countries implementing digital nomad visas, updates to tax treaties addressing cross-border employment complexities, and enhanced scrutiny on compliance worldwide. Additionally, technology advancements streamlined reporting processes, and organizations placed a greater emphasis on supporting their remote workforce with tailored benefits.

If your company has tax equalized assignees, you may have heard from employees who’ve received unexpected tax bills, have yet to settle their tax equalization payments, and/or are confused about how their tax liabilities were calculated. If any of these rings a bell, now is the time to re-examine the hypothetical tax positions for your mobile employees.

On 30 October 2024, Chancelor Rachel Reeves presented the UK budget, which included significant changes to the tax regime for non-domiciled individuals. Specifically, the budget proposed the abolishment of non-domicile status and creation of a new residence-based test known as the Foreign Income and Gains Regime (FIG). As outlined, the new FIG regime will be effective 6 April 2025, greatly impacting the tax situations for individuals moving to or from the UK.