As a result of the steady advance of cross-border business activities, many multinational organizations have come to rely upon internationally mobile employees, typically known as extended business travelers. These activities often include researching new markets and business opportunities, negotiating new contracts, attending meetings and trainings, selling and moving products and services, or simply to maintain links in important markets. In today’s fast-moving, globally diverse, and complex business environment, organizations should seek to regularly update their understanding of the range of potential implications and risks that business travel may bring.

 

“But, I am just traveling on business…”

Extended business travelers are employees who typically travel abroad for short periods of time on behalf of their organizations, but are not on a traditional international assignment and, therefore are able to keep close ties to their families and home-country offices. Valuable though these employees are, they can create a variety of issues for their organizations. In particular, it can be very difficult to keep track of precisely where the employees are, what they are doing there, and how much time they have spent in that foreign location. And this gets even more complicated if the business trip covers several countries.

Consequently, issues such as payroll reporting and paying wage taxes, as well as ensuring proper compliance with country immigration rules and labor laws, can be quite challenging without processes and controls in place to properly identify, track, and support business travelers.

 

Immigration requirements

Just because it looks and sounds like a business trip does not necessarily mean that foreign governments will consider it a business trip. It is critical to understand country immigration rules thoroughly, as enforcement of these rules at a global level has continued to steadily increase for business travelers. More and more business travelers now face heightened arrival screening, along with entry difficulties, challenges and extra requirements, including the potential assumption by some immigration officials that a foreign national traveling on business actually may be entering to work without the proper visa.

 

Our experts can help smooth the process

KPMG’s Global Mobility Services practice has the people, experience, and international presence to effectively support your extended business travelers. Our services include:

• International immigration compliance and advisory services
• International individual tax compliance and advisory services
• Global incentive compensation services
• Global mobility technology
• International social security services

As the business world becomes continuously more global, now is the time to make sure your business is prepared to handle the necessary requirements for your employees traveling for business. Our experts are happy to discuss your unique situation to help you find solutions.
 

Wim Van den Brande
Partner
KPMG Tax & Legal Advisers
T: +32 (0)27084206
E: wvandenbrande@kpmg.com

Nele Godefroid
Senior Tax Manager
KPMG Tax & Legal Advisers
T: +32 (0)27083846
E: ngodefroid@kpmg.com

• Tax Corner

• Transfer pricing documentation requirements
• VAT - Simplified proof of transport