Cross-border employee secondments are often of great benefit to international companies from the DAX-listed companies to small and medium-sized enterprises. However, this is regularly associated with high costs and a significant administrative burden, especially for smaller companies.

A secondment affects the domestic and foreign taxation of the employee. The same applies analogously to questions of social security. Likewise, the pension and retirement planning of the employee must be considered.

It has to be clarified on whose payroll the employee shall be located, whether the company or the employee is obliged to report their salary to the authorities and to withhold both taxes and social security contributions.

Taking compliance and risk management into account, we help you to comply with all worldwide tax and social security regulations.

In particular, we offer you the following consultancy services in the context of employee secondments:

• With the help of the foreign consultant, tax registration as an employer and representation with the foreign tax authorities in the country where the person is regularly employed

• Preparation of secondment contracts or employment contracts for seconded employees with legal assistance

• Consideration of occupational pension plans

• Support in the discussions with seconded employees with the aim of providing them comprehensive information and support

• Calculation and information regarding the impact on the payroll of seconded employees

• One-stop-shop for international tax law consultancy in the context of secondment: consideration of possible impacts on transfer pricing, for example, in the case of intra-group services or also in questions of permanent establishments

• Current payrolls both gross-net and net-gross

• Calculation of a possible tax compensation (for example, so-called tax protection or tax equalisation calculations)

• For complex issues of social security law, we use an external consultant to help ensure optimal consultancy in the interests of the client

We provide the same advice to seconded employees including the preparation of the personal income tax return during their secondment.