Sony is a globally recognised brand which has long operated on a global basis, sending employees around the world in response to changing market conditions. Its HR function is therefore familiar with the many challenges of moving not just its employees, but also often their immediate families overseas.
One particular area of focus for many global multinationals is the increased use of short term business visitors, employees who work temporarily for businesses outside of their home locations. Although tax treaties seek to ensure that employees working across borders are not subject to tax twice on the same income, the need to withhold tax through the payroll is not always so clear cut. Sony, following a reorganisation of its European business, engaged Deloitte to make sure it was meeting its statutory payroll obligations, and that both employees and the company were tax compliant.
On a more holistic level, our global network has given Sony visibility of its assignees’ tax return obligations and to keep track of progress in filing tax returns wherever they are. International assignees are invited to personalised meetings with Deloitte tax experts on arriving or exiting a jurisdiction, so that each employee understands his obligations and can file the necessary paperwork to prevent him being double-taxed in home and host country on the same income.