The Radius Blog

International Operations Update: Global HR, Tax and Local In-Country News

By Lynne Harding, Senior Director, Knowledge Management

Lynne Harding, International Expansion ExpertInternational Operations Update offers at look at some key developments that are likely to affect your business and international assignees. The May edition features selected articles from OverseasConnect on a range of tax, human resources, and regulatory matters.

Items of global interest this month include a discussion of the growing use of performance based incentive plans and an article on the OECD’s recent report on the average tax and social security burdens imposed on employment income in a host of locations.

On the country-specific side, you’ll find important information on transfer pricing developments in India, business licensing news in South Africa, revised financial reporting standards in the UK and Ireland, and work permit and immigration updates in a range of countries. Long-time readers will be pleased to see that “Of Note” has made a return, with a quick snapshot of recent international developments. 

Contact us for more information on how Radius can help with your overseas operations so you can focus on growing your business.

Table of Contents

Global 

Stock Option Planning and Treatment

Includes overview of incentive benefit and compliance requirements

OECD: Published Data on Rising Tax Burdens on Labor Income

Average tax and social security burden on employment incomes increased in 19 out of 34 OECD countries and fell in 14

Of Note

Back by popular demand:  “At-a-glance” developments from various jurisdictions

  • South Africa: Final Reminder Re Memorandum of Incorporation
  • South Africa: "Licensing of Business Bill" Will Impose Additional Obligations
  • Asia: More Wage Rises
  • China: VAT Pilot News – Nationwide Expansion
  • GCC Countries to Regulate Foreign Labor and Kuwait Announces Reductions in Foreign Workforce
  • UK: April Employment Law Changes
  • UK: Short-Term Business Visitor Agreement
  • UK: New Multilateral Action With France, Germany, Italy and Spain to Combat Tax Evasion
  • France: 75% Tax Rate on High Salaries Shifts to Businesses
  • Belgium: Employment Notification Process Under Limosa Simplified
  • US: H1-B Visa Program Reaches Quota Within Days

UK and Europe

UK and Republic of Ireland: Revised Financial Reporting Standards

Revisions fundamentally reform financial reporting, replacing almost all extant standards with three Financial Reporting Standards

Ireland: Eased Employment Permit Requirements Aim to Attract Business

New rules apply to employment permit applications submitted on or after April 10, 2013

Spain: New Law Discourages Early Retirement

Replaces the provisions for early and partial retirement in the August 2011 pension reform law

Germany: Electronic Wage Tax Card Now (Finally) in Place

ELStAM now in use

AMESA 

Australia: Fair Work Act Amendment Bill

Proposals will impact employment relationship

Americas 

US: IRS Releases Annual Transfer Pricing Advance Pricing Agreement 2012 Report

Includes APA program update and overview of TP methods used in executed agreements