GTN Mobility Tax Blog

This article was originally published in Mobility Magazine.

Corporate moves are surging. According to an Atlas Van Lines report, 70% of all companies reported an increase in employee relocations last year. Unfortunately, relocating employees in the US or abroad could require tax obligations that not all HR and mobility professionals are prepared for.

What’s more, many leaders often assume their relocation management company (RMC), mobility tax provider, or local payroll provider will automatically handle tax compliance for their domestic and international moves. That’s not always the case. This article will look at the common misconceptions about relocation tax compliance and lay out tips to help your team avoid tax violations and maximize tax savings for moving expenses.

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.

For the seventh consecutive year, GTN is proud to once again partner with Toys for Tots to brighten the holidays for children in need!

Across the US, communities are facing financial struggles, and families often feel these burdens more during the holiday season. Your generosity can turn a child's holiday from one of emptiness into an occasion filled with joy and wonder.

For most mobility program managers, year-end is a time to have calls with various mobility vendors to discuss the past year and plan for the next. These year-end discussions are crucial to the efficient functioning of your mobility program, as they keep you informed about the evolving landscape of global mobility and the associated tax implications.

The ever-changing nature of international business, along with emerging work trends and technological advancements, has created complex tax scenarios that require careful consideration as companies handle year-end payroll reporting and decide on services and support for their employees.