Employers know that one of the key elements of success in overseas markets is a well motivated team of internationally mobile executives. The ability to transfer executives abroad for periods of assignment from a few months to several years is an essential prerequisite to making the most of today's expanding markets.

But how can you guarantee the continuing loyalty of an executive posted to some distant shore? How can the executive who is far from home be motivated to peak performance? At least part of the answer to these questions is for the employer to take a caring approach to the natural concerns of the expatriate executive.

Surveys show that internationally assigned executives can be prone to uncertainty as a result of differences in the way of life in their temporarily adopted country as compared with home. Differences in laws and regulations – to the extent they relate to the private individual – are part of the problem. National tax and social security systems, for example, can vary widely among countries. The executive wrestling with unfamiliar official forms and an alien bureaucracy can experience a feeling of helplessness which, if left unchecked, may threaten the success of his or her assignment.

Through our membership in BKR International – an association of independent accounting firms, with member firms in more than 120 major markets in roughly 40 countries – we can help you alleviate that problem and gain the maximum benefit from the international movement of executives. Our member firms are expert in the tax and other regulatory systems in force in their own countries, and they have instant access to other member firms around the world. Employers who refer to their local BKR International office executives who are about to undertake a foreign assignment can be sure that the executives will receive all the advice they need with regard to their departure from the home country, and that they will well served by a member firm in the country to which they are going.

Services. By working together our member firms can provide for the employer of expatriate executives a range of services, including:

	Advance calculations of the potential costs of assignments, per local tax and social security regulations
	Advice on minimizing the overall cost of assignments
	Help with visa and work permit problems
	Advice on structuring effective remuneration packages for overseas assignments
	Advice on tax equalization policy and hypothetical withholding tax issues
	Counseling departing executives on the personal financial implications of their impending move
	Advice on the effect of the move on pension entitlements, both in the home country and in the host country
	Negotiating for executives an exit from home country tax and social security systems, often producing a partial repayment of previous withholdings
	Counseling executives upon their arrival in the host country
	Advice to them on how to mitigate their tax and social security liabilities in the host country
	Registering executives in the tax and social security systems of the host country
	Preparing their tax returns there during their period of assignment, checking tax demands issued, and making any necessary representations on their behalf to the local fiscal authorities
	Negotiating for them an exit from the tax and social security systems of the host country at the end of their assignment
	Helping executives with registration requirements on their return home

For executives, we guarantee confidentiality in dealing with their financial affairs. Although we discuss their remuneration arrangements with their employers, we do not disclose to their employers information concerning their private finances.

We invite employers to contact us. Employers who take seriously the potential problems and concerns of their expatriate executives and who enlist our help in dispensing with them will, in many cases, be rewarded with a happier and more effective international team.

A MESSAGE FOR EMPLOYEES

In this article we set out for the employers of expatriate executives how we can help with the international tax and social security problems that their executives will encounter as they move from country to country. We hope that the employers of internationally mobile executives will see it as their responsibility to retain a high-quality network of qualified accountants to assist their executives with their tax returns and their filing requirements in the countries to which they are assigned.

If, however, you are an expatriate executive and your employer does not provide you with this benefit, then we hope that you will consider appointing us personally. Visit BKR International on the web to find information on the countries and the cities in which our offices are located. Wherever your duties take you, there is probably a local BKR member firm of accountants that can assist you with your filing obligations. We promise you a responsive and confidential service.