1、LAST UPDATED ON 12th APRIL 2024SURVEY ON ECONOMIC EMPLOYER 2024Your global tax partnerECONOMIC EMPLOYER SURVEY 2024TAXAND SURVEY ON ECONOMIC EMPLOYER 2024LAST UPDATED:APRIL 20242 Taxands latest Economic Employer survey 2024 explores the approach of tax administrations across the globe in terms of th

2、eir application of the concept and examines our experience as advisors of the nuances that apply for corporates engaging with local tax authorities.These findings stand to play a valuable role in contributing insight to corporate entities and individuals,as they seek to manage the tax affairs of int

3、ernationally mobile employees.Development of Economic Employer concept The economic employer concept derives from Art.15(2)b of the OECD Model Tax Convention.According to said article,a contracting member state is entitled to tax an employees remuneration if the remuneration is borne from an economi

4、c perspective by,or there is a clear integration of the said employee with an employer with residency in the contracting member state.This allocation of the right to tax the employees remuneration in general becomes effective from the first day of the employees activities.As of today,many countries

5、have still not implemented the concept into their national law to justify wage tax withholding obligations.This implementation is however led by the desire of many tax authorities to establish withholding obligations at source.The Economic Employer concept uses criteria to define the workers true em

6、ployer and consequently establishes who is liable for the fulfilment of withholding tax obligations.Europe versus the WorldOne of the key observations from this survey is the overwhelming dominance of European nations who have implemented the Economic Employer model recently,despite being given no f

7、ormal mandate or obligation from the OECD or EU to do so.Many large European economies including Germany,Ireland,Sweden,Poland and others use the Economic Employer concept to justify wage tax withholding obligations.Others,such as Hungary,Finland,Greece or Spain who do not,are either expected to do

8、so in the medium term or have the Economic Employer concept under some form of consideration when applying the relevant tax treaty.There are a multitude of reasons why countries that have not adopted the concept,may have chosen not to do so.Many have tax systems or authorities that are slightly less

9、 developed than European counterparts,meaning that committing time and resources to both implementing and enforcing the Economic Employer concept is not currently possible.Others may choose not to implement it because they attract foreign workers working in the country in part due to the simplicity

10、of their tax laws.For corporates operating across jurisdictions that follow the Economic Employer concept,there is no guarantee of simplicity in its application.Despite EU freedom of movement,there is even an argument that,at a commercial level,the Economic Employer concept makes temporary movement

11、of workers between tax jurisdictions more challenging than it needs to be in its current guise.This is primarily because there is no mandated process or set of rules from governing bodies such as the EU or OECD,so each country is able to set its own tax regulations.For example,many countries offer a

12、 harmlessness period of exemption such as Sweden,whereby a worker can spend a fixed period of time in the country to work without incurring tax obligations.In contrast,Germany does not;the Economic Employer could be obliged to withhold wage tax from the first day of the employees activities.These di

13、stinctions can present a significant administrative burden to many corporates who,like their employees,face the possibility of fines if their interpretation of the tax regulation is not correct.Recommendations for implementing a compliant structureAt a company level,the key to a compliant process re

14、mains in forward planning.This requires competent tax advice and in most cases,in the first instance an awareness by employers as to which cases require a more detailed tax analysis.We hope you find our guide a useful asset in identifying such cases and we and our colleagues remain at your disposal

15、to assist.Introduction by Pernilla van der Capellen,Skeppsbron Skatt AB and Christian Hick,Flick Gocke SchaumburgPARTICIPATING COUNTRIESTAXAND SURVEY ON ECONOMIC EMPLOYER 20243 LAST UPDATED:APRIL 2024EUROPE 4AUSTRIA 5BELGIUM 6CYPRUS 7CZECH REPUBLIC 8DENMARK 9FRANCE 10FINLAND 11GERMANY 12GREECE 13HUN

16、GARY 14IRELAND 15ITALY 16LUXEMBOURG 17MALTA 18NETHERLANDS 19NORWAY 20POLAND 21PORTUGAL 22ROMANIA 23SERBIA 24SLOVAKIA 25SLOVENIA 26SPAIN 27SWEDEN 28SWITZERLAND 29UNITED KINGDOM 30AFRICA 31MAURITIUS 32SOUTH AFRICA 33AMERICAS 34ARGENTINA 35CANADA 36COLOMBIA 37MEXICO 38PERU 39UNITED STATES 40ASIA 41AUST

17、RALIA 42CHINA 43INDIA 44INDONESIA 45JAPAN 46MALAYSIA 47PHILIPPINES 48SOUTH KOREA 49EUROPETAXAND SURVEY ON ECONOMIC EMPLOYER 2024LAST UPDATED:APRIL 20244 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024 RETURN TO CONTENTS PAGETAXAND SURVEY ON ECONOMIC EMPLOYER 2024AUSTRIACONTACTLAST UPDATED:APRIL 2024 RETURN

18、TO CONTENTS PAGE Does Austria apply the economic employer concept for the establishment of wage tax withholding obligations?Yes,under certain conditions.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?It is applied based on an intern

19、al administrative regulation.The decree was issued by the Federal Ministry of Finance.The purpose of the decree is to specify the organization and actions of the Federal Ministry of Finances subordinate authorities in more detail.When did your Country adopt the economic employer concept?In 2013 the

20、Administrative court made a decision in favor of the economic employer concept.In 2014 the Federal Ministry of Finance has issued the decree.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?No,if the

21、 requirements of an economic employer are fulfilled,the employee becomes taxable in Austria from day one.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?No,as long as the foreign formal employer has no Austrian permanent establish

22、ment.In this case the domestic employer must withhold tax at source(on behalf of the formal employer).To reduce/avoid withholding tax at source,the formal employer can establish a voluntary payroll and pay wage taxes(further requirements need to be fulfilled to obtain relief from WHT).There exists o

23、ne exemption:If the employee(white-collar worker*)is hired out to a company that is a member of a company group,the economic employer can set up the voluntary payroll and fulfill the reporting obligations in Austria on behalf of the formal employer.Can the economic employer register and report wage

24、taxes on behalf of the formal employer?Yes,if the employee(white-collar worker*)is hired out to a company that is a member of a company group.Otherwise,the formal employer has to fulfill the reporting obligations in case of a payroll in Austria.*A white-collar worker is a person who performs profess

25、ional,desk,managerial,or administrative work.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?In Austria two options are provi

26、ded for securing the entitlement to tax(in case an employee is hired out and there exists an economic employer in Austria):Tax at source will be withheld by the domestic employer(on behalf of the formal employer).This is a very complicated process with the chance to avoid tax at source(partly)retros

27、pectively with filing a refund application or with the set up of a payroll in Austria.In this regard,a few reporting obligations should be met.In general,we would recommend to set-up a payroll in Austria to avoid tax at source and to meet the reporting and tax obligations.However,this generally requ

28、ires an exemption notice from the Austrian tax authorities in advance.Andrea Rieser-FruhmannLeitnerLeitnerandrea.rieser- Tel:+43 1 718 98 90-4745 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024BELGIUMLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Belgium apply the economic employer concept for the est

29、ablishment of wage tax withholding obligations?The concept of“economic employer”does not exist as such under Belgian tax law.However,in a cross-border situation(i.e.,where a non-Belgian tax resident individual works in Belgium as an employee for the benefit and under the supervision of a Belgian tax

30、 resident company(the“Belgian Company”),Belgian wage withholding tax may be due-in certain cases by the Belgian Company on the remuneration resulting from the professional activity performed for the benefit of the Belgian Company,for instance:(i)where the Belgian Company pays directly the remunerati

31、on to the non-resident employee or acts as an intermediary in the payment of such remuneration;(ii)where the remuneration of the non-resident employee is paid by a foreign company which is an affiliate(e.g.,parent company)of the Belgian Company(the“Foreign Affiliate”)and is then re-invoiced to the B

32、elgian Company as remuneration for the services performed by the employee;or(iii)where the remuneration of the non-resident employee is paid by the Foreign Affiliate,even if the cost represented by this remuneration is not re-invoiced to the Belgian Company.Is the concept implemented into national l

33、aw or is it applied via practice or based on administrative instructions?The rule under(i)above is provided for in Article 270,para.1,1,of the Belgian Income Tax Code 1992(“BITC”)juncto Article 228,2,6,BITC.The rules under(ii)and(iii)above are provided for in Article 270,para.2,of the BITC and were

34、inserted by a law of 11 February 2019.This provision is applicable for remunerations paid as from 1 March 2019.When did your Country adopt the economic employer concept?See above.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirem

35、ents of an economic employer?No.In terms of the threshold of days,Belgium only applies the threshold provided for in Article 15(2)(a)of the OECD model convention.As a rule,if a non-Belgian tax resident works in Belgium as an employee,his/her remuneration would be taxable in Belgium(and Belgian wage

36、withholding tax could therefore be due)unless all the following criteria are cumulatively met:(i)the non-Belgian tax resident employee is present in Belgium for a period(or periods)not exceeding in the aggregate 183 days within any period of 12 months(or within the same calendar year,as the case may

37、 be);and(ii)the remuneration is paid by,or on behalf of,an employer who is not a resident of Belgium;and(iii)the remuneration is not borne by a permanent establishment or a fixed base which the formal employer has in Belgium.Therefore,if the non-Belgian tax resident employee is present in Belgium fo

38、r a period(or periods)exceeding in the aggregate 183 days within any period of 12 months(or within the same calendar year,as the case may be),his/her remuneration should be taxable in Belgium even if the other two criteria are not met.If so,how many days and for which period?See above.A period or pe

39、riods of 183 days within any period of 12 months(see e.g.Article 15 of the UK-Belgium double tax treaty)or within the calendar year(see e.g.Article 11 of the France-Belgium double tax treaty).Is the formal employer obliged to register and pay wage taxes?This depends on the analysis developed above.I

40、f the Belgian Company is not required to register and pay Belgian wage withholding tax,no Belgian wage withholding tax should be due in Belgium,except in the case where the remuneration constitutes a tax deductible expense/cost in Belgium for the foreign formal employer(i.e.,if the foreign formal em

41、ployer has a Belgian establishment for which the remuneration could be a tax deductible cost,in which case the latter would be obliged to register and pay Belgian wage withholding tax).Can the economic employer register and report wage taxes on behalf of the formal employer?To our knowledge this is

42、not provided by the BITC and we are not aware that this would be allowed and performed in practice.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requ

43、irements as burdening?Not Applicable.CONTACTPierre-Olivier van CauberghArteopo.vancaubergharteo.lawTel:+32 2 392 81 106 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024CYPRUSCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Cyprus apply the economic employer concept for the establishment of wage ta

44、x withholding obligations?No.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Not Applicable.When did your Country adopt the economic employer concept?Not Applicable.Is there a threshold of days that an employee can work in your count

45、ry for a domestic client without meeting the requirements of an economic employer?Not Applicable.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?Yes.There is an obligation for the employer for PIT withholding on salaries under the

46、 pay-as-you-earn(PAYE)system.Can the economic employer register and report wage taxes on behalf of the formal employer?No.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companie

47、s experience these requirements as burdening?Cyprus does not apply the economic employer concept.Christos TheophilouTaxand CTel:+35 7 22 875 723Costas SavvaTaxand CTel:+35 7 22 875 7227 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024CZECH REPUBLICCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does t

48、he Czech Republic apply the economic employer concept for the establishment of wage tax withholding obligations?Yes.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?National law.When did your country adopt the economic employer concep

49、t?1993.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?No.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?No.Can the economic em

50、ployer register and report wage taxes on behalf of the formal employer?Yes,the economic employer must register and report and make the payment of wage tax.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative

51、requirements etc.?Do the companies experience these requirements as burdening?Economic employer=when employees of foreign entity are assigned to work for a Czech entity under its control and instructions and their salary costs are charged to the Czech Republic.This is one of the assignment structure

52、s under which the employees of foreign entity work in the Czech entity.Markta epelkovLeitnerLTel:+420 228 883 9228 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024DENMARKCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Denmark apply the economic employer concept for the establishment of wage tax w

53、ithholding obligations?Yes.In Denmark we refer to it as hired-out-labour.Hired-out-labour entails that an employee formally employed by a foreign entity without a permanent establishment in Denmark may if certain conditions are met be deemed hired-in by a Danish enterprise with the consequence that

54、the Danish enterprise must withhold wage taxes in the fee paid by the Danish enterprise to the foreign entity in which the employee is employed.The tax corresponds to 30 pct.(and 8 pct.labour market contributions)of the amount deemed the gross salary of the foreign employee.Is the concept implemente

55、d into national law or is it applied via practice or based on administrative instructions?National law.The Danish Withholding of Tax Act section 2(1)(3),cf.section 48 B.When did your country adopt the economic employer concept?1982.Is there a threshold of days that an employee can work in your count

56、ry for a domestic client without meeting the requirements of an economic employer?No.A case-by-case assessment is required.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?No.Can the economic employer register and report wage taxes

57、 on behalf of the formal employer?Not Applicable.The formal employer has no registration and reporting obligation for wage taxes.The Danish enterprise is statutorily obliged to register,report and withhold the wage tax.Comments regarding the impact of the“economic employer concept”on individuals tha

58、t travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?Under the hiring-out of labour scheme,the individual is exempt from the obligation to file a tax return(provided that the individual has no other income in De

59、nmark)as the Danish enterprise has the withholding and reporting obligation.The Danish enterprise is responsible for the payment of the tax to the Danish tax authorities.When paying the invoice to the foreign entity for the hired-out labour,the Danish enterprise must withhold the tax.Gitte Nipgaard

60、LaursenBech-BTel:+45 72 27 36 549 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024FRANCECONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does France apply the economic employer concept for the establishment of wage tax withholding obligations?No.Is the concept implemented into national law or is it app

61、lied via practice or based on administrative instructions?Not Applicable.When did your Country adopt the economic employer concept?Not Applicable.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?Not

62、Applicable.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?Not Applicable.Can the economic employer register and report wage taxes on behalf of the formal employer?Not Applicable.Comments regarding the impact of the“economic emplo

63、yer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?Under French domestic tax law,any person,whether a French tax resident or not,who works in France is subject to withholding tax

64、on his or her salary from the first day of employment.There is no 183-day rule allowing,below this threshold,an exemption from French income tax on salaries for non-resident individuals working in France.At the tax-treaty level,this concept is already partly expressed through the“183-day rule”of art

65、icle 15 of the OECD model tax treaty(and reinforced since the OECD revised in 2010 its guidance relating to Article 15 introducing the concept of economic employer).However,the French tax authorities primarily focused on the interpretation of the employment contract and the notion of relationship of

66、 subordination.To be noted,although the employment contract may be used as a criterion by the tax authorities,French administrative Courts sometimes go beyond the formal contractual link when interpretating specific domestic provisions.However,apart from few isolated decisions taken based on the“sub

67、stance over form”approach(in particular when the legal employer recharges the salary of the non-French tax resident employee to the French company receiving the services),there is no trend,to our knowledge,at the level of the French tax authorities and judges,towards a common use of this approach.Ol

68、ivier JanorayArsene Taxandolivier.janorayarsene-Tel:+33 1 70 39 54 9110 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024FINLANDCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Finland apply the economic employer concept for the establishment of wage tax withholding obligations?No.The previous Finn

69、ish government had issued a draft proposal in 2022 proposing adoption of the economic employer concept in Finland,but this proposal was discontinued and dismissed due to political and stakeholders resistance.Currently,there are no signs that Finland would be proceeding with adoption of economic empl

70、oyer concept during the current governments term.Finland has,however,specific tax rules regarding labor-hire situations which can establish tax obligations for employees and additional reporting obligations for employers under certain conditions.Is the concept implemented into national law or is it

71、applied via practice or based on administrative instructions?Not Applicable.When did your Country adopt the economic employer concept?Not Applicable.Please see above.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an ec

72、onomic employer?Not Applicable.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?Not Applicable.Can the economic employer register and report wage taxes on behalf of the formal employer?Not Applicable.Comments regarding the impact o

73、f the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?Not Applicable.Heikki WahlroosBTel:+358 20 713 3589Eveliina IlonenBTel:+358 40 718 050411 TAXAND SURVEY ON E

74、CONOMIC EMPLOYER 2024GERMANYCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Germany apply the economic employer concept for the establishment of wage tax withholding obligations?Germany applies the economic employer concept.A company qualifying as an economic employer is obliged to meet

75、monthly wage tax withholding obligations.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?The economic employer concept is implemented in the German Income Tax Act(Sec.38(1)s.2).A circular of the German tax authorities contains detail

76、s concerning the practical application of the provision.When did your country adopt the economic employer concept?The economic employer concept was implemented in German national tax law as early as in 2004.The German interpretation of the provision has strong references to the economic employer con

77、cept according to Art.15(2)of the OECD Model Convention.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?The legal provision does not contain a harmlessness limit with respect to the working days in

78、Germany.The consequence is that a case-by-case assessment is required with respect to the overall circumstances of the individual case.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?Not Applicable.Can the economic employer regist

79、er and report wage taxes on behalf of the formal employer?The economic employer is obliged to register and to withhold wage tax.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the co

80、mpanies experience these requirements as burdening?From a German perspective,the economic employer concept is important for employees who perform their activities in Germany for another group company.The impact of the economic employer concept is significant at the level of the employer as well as a

81、t the level of the employer.If the German company meets the requirements of an economic employer,the company is obliged to implement a shadow payroll.In practice,this triggers a significant additional administrative burden.Christian HickFlick Gocke Schaumburgchristian.hickfgs.deTel:+49 228 9594-2271

82、2 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024GREECECONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Greece apply the economic employer concept for the establishment of wage tax withholding obligations?No.The Greek tax legislation has not introduced the economic employer concept.Such concept m

83、ay only be applied within the context of Double Tax Treaties(DTTs).More specifically,in cases where employment is exercised in Greece by foreign tax resident employees it needs to be assessed whether the conditions set under the applicable DTTs are satisfied in order for Greece to claim taxing right

84、s over the foreign employees.In principle,Greek tax legislation provides for taxation of Greek tax residents for their worldwide income and of foreign tax residents for their income arising in Greece.For the purposes of Greek income taxation,income derived from employment exercised in Greece is cons

85、idered as income arising in Greece and it is,thus,taxed in Greece.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?As previously mentioned,the concept of economic employer has not been introduced into Greek tax legislation,but it may

86、apply in the context of the DTTs.When did your Country adopt the economic employer concept?Not Applicable.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?There is no threshold of days for the applic

87、ation of the economic employer concept.However,Greece may claim taxing rights over salary income of foreign employees performing their duties in Greece for a foreign employer in case their presence in Greece exceeds the 183-day threshold pursuant to the majority of the applicable DTTs.If so,how many

88、 days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?Yes,any legal entity(Greek or foreign)which formally occupies employees in Greece is obliged to register with the Greek tax authorities and withhold tax on the salary paid for work performed in Gr

89、eece.Can the economic employer register and report wage taxes on behalf of the formal employer?Not Applicable.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience

90、 these requirements as burdening?Since the economic employer concept does not apply in Greece there is no impact in connection with such concept.Nevertheless,foreign companies wishing to employ individuals in Greece,should bear in mind any tax compliance obligations in Greece(e.g.withholding tax or

91、social security obligations).Filenia Andreadi Zepos&YTel:+30 210 6967 24913 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024HUNGARYCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Hungary apply the economic employer concept for the establishment of wage tax withholding obligations?No.Hungary appli

92、es the economic employer concept only within the context of Double Tax Treaties to determine which state has the rights to tax the income from the employment relationship.If there is no employment relationship between the expatriate and the Hungarian receiving company,then the Hungarian company is n

93、ot automatically considered an employer according to the Hungarian income tax laws even if economic employment is established.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Administrative instructions(applying the economic employer

94、concept within the context of Double Tax Treaties).The concept is implemented based on the commentary to the OECD Model Convention published on 22.07.2010.The Hungarian Tax Authority also published an official guideline on the topic.When did your Country adopt the economic employer concept?The guide

95、lines of the Hungarian Tax Authority were published on 31 October 2012 and we consider this date as the date of adoption.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?There is no exemption limit.A

96、 case-by-case assessment is required to determine the economic employer.Inter alia the following criteria have to be examined:(i)Integration of the employee into the business activities and hierarchy of the Hungarian employer.(ii)Which company bears the costs of employment?(iii)Are the employees act

97、ivities carried out in the interest of the Hungarian company?If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?No.Can the economic employer register and report wage taxes on behalf of the formal employer?No.If the salary is paid by

98、a non-resident formal employer,then the employee is responsible for paying the wage tax(the formal employer can decide to take over the paymenttransfer).Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative re

99、quirements etc.?Do the companies experience these requirements as burdening?If the posted workers income is taxable in Hungary,the Hungarian economic employer must register the posted worker with the tax authority(under the form T104).Furthermore,payroll calculations are necessary to determine the t

100、axes payable after the workdays taxable in Hungary,this could mean additional administration.Dr.Nra RczLeitnerLTel:+36 1 279 29-3014 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024IRELANDCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Ireland apply the economic employer concept for the establish

101、ment of wage tax withholding obligations?Up to now,Ireland generally looked only at the legal employer-employee relationship in place when considering the eligibility of the employee for double taxation relief.This approach is in line with legislation and a long line of decided cases.In addition,Sec

102、tion 4.3.2 of Tax and Duty Manual Part 42-04-65 confirms that Irish Revenue will consider the legal nature of the term employer(rather than the economic employer approach)when determining whether a genuine foreign employment exists.Is the concept implemented into national law or is it applied via pr

103、actice or based on administrative instructions?Not Applicable.When did your Country adopt the economic employer concept?Not Applicable.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?Not applicable.

104、If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?Yes.Can the economic employer register and report wage taxes on behalf of the formal employer?Yes.Comments regarding the impact of the“economic employer concept”on individuals that t

105、ravel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?Not Applicable based on current practice.Colin BolgerWilliam FryColin.BTel:+353 1 639 504815 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024ITALYCONTACTLAST UPDATED:APRI

106、L 2024 RETURN TO CONTENTS PAGE Does Italy apply the economic employer concept for the establishment of wage tax withholding obligations?No,Italian tax law does not provide for the application of the economic employer concept nor the Italian tax authorities have issued administrative guidelines expli

107、citly applying such principle.However,cases where the formal employer recharges the salary of the non-Italian tax resident employee to the Italian entity receiving the services should be carefully analysed,taking into account the guidelines provided in the OECD Commentary.Is the concept implemented

108、into national law or is it applied via practice or based on administrative instructions?Not Applicable.When did your Country adopt the economic employer concept?Not Applicable.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirement

109、s of an economic employer?Not Applicable.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?Italian legal entities which formally occupy employees are obliged to withhold tax(i)on the salaries paid to Italian resident employees and(i

110、i)for non-Italian resident employees,on the salaries related to the activities carried out in Italy.On the other hand,in case the formal employer is a foreign entity,in the absence of a PE,the taxes should be paid directly by the employee.Can the economic employer register and report wage taxes on b

111、ehalf of the formal employer?Not Applicable.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?Not Applicable.Francesco Cardone

112、Taxandfrancesco.cardonealma-Tel:+39 0249 4864Luca Galliani Taxandluca.gallianialma- Tel:+39 0249 486416 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024LUXEMBOURGCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Luxembourg apply the economic employer concept for the establishment of wage tax withho

113、lding obligations?No.The Luxembourg tax legislation has not introduced the economic employer concept.Such concept may only be applied within the context of Double Tax Treaties(DTTs).More specifically,in cases where employment is exercised in Luxembourg by foreign tax resident employees it needs to b

114、e assessed whether the conditions set under the applicable DTTs are satisfied for Luxembourg to claim taxing rights over the foreign employees.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Not Applicable.When did your Country adopt

115、 the economic employer concept?Not Applicable.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?Not Applicable.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to

116、 register and pay wage taxes?Yes.Can the economic employer register and report wage taxes on behalf of the formal employer?Not Applicable.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.

117、?Do the companies experience these requirements as burdening?Not Applicable.Petya DimitrovaATOZ petya.dimitrovaatoz.luTel:+352 26 940 224+352 661 830 224Antoine DupuisATOZantoine.dupuisatoz.luTel:+352 26 940 207+352 661 830 60117 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024MALTACONTACTLAST UPDATED:APRIL

118、2024 RETURN TO CONTENTS PAGE Does Malta apply the economic employer concept for the establishment of wage tax withholding obligations?No.We do not have the concept in Malta.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Not Applicab

119、le.When did your Country adopt the economic employer concept?Not Applicable.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?Not Applicable.If so,how many days and for which period?Not Applicable.Is

120、the formal employer obliged to register and pay wage taxes?Yes we adopt a Final Settlement System similar to the Pay as You earn system in the UK.Can the economic employer register and report wage taxes on behalf of the formal employer?Not Applicable.Comments regarding the impact of the“economic emp

121、loyer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?Not Applicable.Mary Anne InguanezAvanziamaryanne.inguaneztmf-Tel:+356 2730 004518 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024NETHE

122、RLANDSCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does the Netherlands apply the economic employer concept for the establishment of wage tax withholding obligations?Yes,including for individual income tax purposes.Is the concept implemented into national law or is it applied via practice

123、or based on administrative instructions?Administrative instructions and case law.When did your Country adopt the economic employer concept?1 December 2006.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic empl

124、oyer?Yes.If so,how many days and for which period?Max.60 days within a 12 month period and only 1)for specific job positions and 2)when working within the same group.Can the economic employer register and report wage taxes on behalf of the formal employer?Yes,if the economic and formal employer are

125、part of the same group.Formal approval from the Dutch tax authorities is required.Is the formal employer obliged to register and pay wage taxes?Yes,the formal employer has to register and pay wage taxes if the formal employer has a(fictitious)permanent establishment or a permanent representative in

126、the Netherlands.If part of the same group,this obligation can be shifted to the economic employer(if approved by the Dutch tax authorities).Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements et

127、c.?Do the companies experience these requirements as burdening?Per 1 January 2024,there is a new decree stating that for tax treaties concluded before 22 July 2010,individual charging of wage costs and the authority relationship must be considered for the economic employer concept.For tax treaties c

128、oncluded after 22 July 2010,the facts and circumstances(holistic approach in line with OECD commentary)must be considered for the economic employer concept,one specific element-such as individual charging of wage costs-is not decisive as such.Sander MichalTaxand Netherlandssander.michaeltaxand.nlTel

129、:+31 20 435 64 2119 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024NORWAYCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Norway apply the economic employer concept for the establishment of wage tax withholding obligations?Yes.Norway applies“hire of labor”clause with a broad definition,establishi

130、ng tax obligations for employees made available to the economic employer in Norway from day 1.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?National law,combined with administrative instructions and interpretation of tax treaties.W

131、hen did your Country adopt the economic employer concept?Applied for decades.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?No.If so,how many days and for which period?Not Applicable.Is the formal

132、employer obliged to register and pay wage taxes?Yes.Can the economic employer register and report wage taxes on behalf of the formal employer?No.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requiremen

133、ts etc.?Do the companies experience these requirements as burdening?Fairly extensive obligations for employers with employees on assignment in Norway,in terms of registration,reporting,social security contributions,and withholding tax obligations etc.Registration and reporting obligations for employ

134、ers apply from day one,regardless of the employees tax liability.A Pay As You Earn(PAYE)scheme is available,to simplify wage tax payment and reporting obligations.Are FagerhaugSelmera.fagerhaugselmer.noTel:+47 982 67 01720 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024POLANDCONTACTLAST UPDATED:APRIL 2024 R

135、ETURN TO CONTENTS PAGE Does Poland apply the economic employer concept for the establishment of wage tax withholding obligations?Yes.In practice,the economic employer concept relates mainly to the verification which entity incurs the cost of employees remuneration.This is a prevailing factor,though

136、we keep in mind also the remaining criteria as per the OECD guidelines(e.g.whether the work is supervised by Polish entity,which entity bears the risk of employees activity etc.).This is not included directly in the Polish law,but rather a practice followed by the companies sending individuals to Po

137、land,rarely by the tax authorities.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Via practice and based on administrative instructions.When did your Country adopt the economic employer concept?Not Applicable.Is there a threshold of

138、 days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?No.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?No,the employee is obliged to pay wage taxes on his/

139、her own as long as he/she receives the employment income directly from the formal employer(home country company).Can the economic employer register and report wage taxes on behalf of the formal employer?No(i.e.the employee is obliged to pay wage taxes on his foreign income on his/her own),unless the

140、 foreign employer registers its office in Poland and transfers the given employee to this office.On the other hand,in some particular cases where the local employment contract with the economic employer(hosting entity)and a separate arrangements have also been concluded,it may be possible to streaml

141、ine the full compensation&benefits package(technically provided by both companies)within the“umbrella”delivery to be formally reported and reconciled for wage tax withholding purposes solely by the Polish company(economic employer).Comments regarding the impact of the“economic employer concept”on in

142、dividuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?If the Polish company is regarded an economic employer,the employee is subject to taxation in Poland as of his the first working day in our count

143、ry(i.e.not after exceeding the period of 183 days).It means the employee(the taxpayer)is obliged to pay monthly tax advances as of the beginning of his/her work in Poland,along with annual tax return filing.This may be seen as burdensome,hence frequently the companies engage tax advisors to support

144、the employees with Polish tax compliance.Michal WodnickiCridomichal.wodnickicrido.plTel:+48 538 626 92121 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024PORTUGALCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Portugal apply the economic employer concept for the establishment of wage tax withhold

145、ing obligations?Not for withholding tax purposes.The economic employer concept is just included in the Personal Income Tax Code to extend and clarify the scope of“employment income”.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Not

146、 Applicable.When did your Country adopt the economic employer concept?Not Applicable.Is there threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?Not Applicable.If so,how many days and for which period?Not Applica

147、ble.Is the formal employer obliged to register and pay wage taxes?Not Applicable.Can the economic employer register and report wage taxes on behalf of the formal employer?Not Applicable.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country

148、,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?Not Applicable.Isabel Vieira dos ReisGarrigues ITel:+34 21 382 120022 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024ROMANIACONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Romania apply t

149、he economic employer concept for the establishment of wage tax withholding obligations?No.No clear provisions are enclosed in the Romanian legislation in this respect.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?No clear guidance

150、is available as per the Romanian legislation/national practice only the OECD guidelines are used for assessing the applicability of the economic employer concept in Romania;nevertheless,in practice we have not seen the applicability of such concept often scrutinized by the tax authorities.When did y

151、our Country adopt the economic employer concept?Not Applicable.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?Not regulated,as the economic employer concept is not specifically included in the Roma

152、nian legislation.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?Yes the standard procedure is for the formal employer to register and pay social security contributions,or to pass such obligation to the employee(in case of non-res

153、ident employers and employees for which social security contributions are due in Romania based on the EU social security legislation or the social security agreements to which Romania is a party),but the personal income tax is due by the employee directly.Can the economic employer register and repor

154、t wage taxes on behalf of the formal employer?No standard procedure available in Romania in this respect.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience thes

155、e requirements as burdening?Not Applicable,considering the above answers.Georgiana MateiTaxhousegeorgiana.mateitaxhouse.ro Tel:+40 21 316 06 45/46/4Angela RoscaTaxhouseangela.roscataxhouse.roTel:+40 21 316 06 45/46/4723 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024SERBIACONTACTLAST UPDATED:APRIL 2024 RETU

156、RN TO CONTENTS PAGE Does Serbia apply the economic employer concept for the establishment of wage tax withholding obligations?No.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Not Applicable.When did your Country adopt the economic

157、employer concept?Not Applicable.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?Not Applicable.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and

158、pay wage taxes?Yes.Can the economic employer register and report wage taxes on behalf of the formal employer?Not Applicable.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the compan

159、ies experience these requirements as burdening?Not Applicable.Jelena KneeviLeitnerLTel:+381 11 6555-11124 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024SLOVAKIACONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Slovakia apply the economic employer concept for the establishment of wage tax withhold

160、ing obligations?Yes.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?National law.This issue is regulated in section 5(4)of the Slovak Income Tax Act.When did your Country adopt the economic employer concept?The economic employer conc

161、ept has been present in the Slovak tax law at least since the new,completely revised Income Tax Act has been adopted in 2004.The relevant provision was amended in 2016 to regulate the PE issue(see below).Is there a threshold of days that an employee can work in your country for a domestic client wit

162、hout meeting the requirements of an economic employer?No,the concept of the economic employer is to be applied from the first day of work of the foreign employee for the Slovak economic employer in Slovakia.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to reg

163、ister and pay wage taxes?Yes and No.The economic(Slovak)employer is obliged to register the employee and pay the corresponding wage taxes in Slovakia unless the foreign legal employer has a permanent establishment in Slovakia.If the foreign legal employer has a PE in Slovakia,this PE(and not the Slo

164、vak economic employer)takes over the obligations of the legal employer in Slovakia-registration,wage taxes,thereto related reporting obligations(applicable since 2016).Can the economic employer register and report wage taxes on behalf of the formal employer?No,the economic employer registers and rep

165、orts wage taxes for the employee on its own behalf.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?Basically,the economic emp

166、loyer concept does not put any obligations on the individual(employee).It is the Slovak economic employer that takes over the duties of the legal employer vis-vis Slovak authorities.We perceive the concept of economic employer to be practical and fair.For a Slovak-resident entity,it is not so compli

167、cated to take over these obligations as it would be for a foreign non-resident entity which has no knowledge of Slovak tax law and,of course,does not have any employees who speak Slovak.As for problems in practice,companies(economic employers)often find it difficult to meet various deadlines as they

168、 often do not have all the necessary information on the employee and the amount of his/her salary on time,communication with legal employer is necessary.Katarina HoppeBMB Partnerskatarina.hoppebmb.skTel:+421 903 482 78725 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024SLOVENIACONTACTLAST UPDATED:APRIL 2024

169、RETURN TO CONTENTS PAGE Does Slovenia apply the economic employer concept for the establishment of wage tax withholding obligations?The Slovenian tax legislation and practice does not foresee the application of the economic employer concept in this respect.Therefore,its currently applied in the cont

170、ext of income source determination and DTT application but not for wage tax withholding.Additionally,in certain cases domestic formal employers are bound by wage tax obligations even though they do not formally pay or economically bear the costs of certain payments to their employees(e.g.for payment

171、s forom foreign entities received by employees in connection with the employment).Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Based on the wording of the Tax Procedure Act it would be possible to implement this concept in practic

172、e.However,currently its not being practiced(nor technically possible).When did your Country adopt the economic employer concept?Not Applicable.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?Not App

173、licable.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?No.Unless the formal employer has a PE in Slovenia the employee is personally obliged to pay wage taxes.Can the economic employer register and report wage taxes on behalf of

174、the formal employer?Currently,no.The employee is personally obliged to report wage taxes(except in cases where the formal employer has a PE in Slovenia and is therefore obliged to also withhold wage taxes for the employees in Slovenia).Comments regarding the impact of the“economic employer concept”o

175、n individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?Since the Slovenian economic employers are not obliged(or even able)to levy withholding wage taxes,the employees are personally obliged to ta

176、ke care of all the necessary compliance.Its therefore quite common that the foreign formal employers hire Slovenian tax experts to support their employees and handle the compliance on their behalf.Jure MercinaLeitnerLTel:+386 1 563 67 5026 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024SPAINCONTACTLAST UPDA

177、TED:APRIL 2024 RETURN TO CONTENTS PAGE Does Spain apply the economic employer concept for the establishment of wage tax withholding obligations?There are no specific provisions in the legislation in respect of the concept of“economic employer”.In general terms,for withholding tax purposes,the Person

178、al Income Tax(“PIT”)Law establishes that entities that satisfy or pay income subject to PIT will be obliged to practice tax withholdings.In case of related entities within the same group,for PIT withholding tax purposes,the legislation states,in general terms,that when an entity,resident or non-resi

179、dent,satisfies or pays income from work to taxpayers who provide their services to a resident entity related to it or to a permanent establishment in Spanish territory,the entity or permanent establishment in which the PIT taxpayer provides his services,must apply the tax withholding or tax payment

180、on account.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?There is not a concrete definition of the concept of“economic employer”in our tax legislation,neither in the tax resolutions issued by the competent tax authorities.Although

181、the tax authorities have not a defined position in this respect,the OECD criteria should be taken into account.When did your Country adopt the economic employer concept?Not Applicable.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the req

182、uirements of an economic employer?Not Applicable.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?Not Applicable.Can the economic employer register and report wage taxes on behalf of the formal employer?Not Applicable.Comments rega

183、rding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?Not Applicable.Eduardo Gmez de Salazar GTel:+34 91 514 5200 Elena Can RomoGTel:+34 91 514

184、52 0027 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024SWEDENCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Sweden apply the economic employer concept for the establishment of wage tax withholding obligations?Yes.Is the concept implemented into national law or is it applied via practice or base

185、d on administrative instructions?National law.In the Special income tax act for non-residents.When did your country adopt the economic employer concept?The new rule came into force as of 1 January 2021.Is there a threshold of days that an employee can work in your country for a domestic client witho

186、ut meeting the requirements of an economic employer?Yes.If so,how many days and for which period?15 consecutive workdays and 45 workdays during a calendar year.Only actual workdays are counted.Workdays in the employees home country discontinue the consecutive workdays in Sweden.Is the formal employe

187、r obliged to register and pay wage taxes?Yes.Can the economic employer register and report wage taxes on behalf of the formal employer?No.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.

188、?Do the companies experience these requirements as burdening?If there is an economic employer in Sweden the formal employer is obliged to(i)register for employer reporting purposes in Sweden,(ii)file monthly payroll returns,(iii)pay/report withholding tax(30%)for employees performing services in Swe

189、den,and(iv)pay/report social security contributions(as a general rule).The administrative burden for the foreign employer will increase in relation to Sweden applying the economic employer concept.(v)file specific information with the Tax Agency the year after the income year,in order for the tax Ag

190、ency to assess whether a permanent establishment is at hand.Pernilla van der CapellenSkeppsbron Skatt ABpernilla.van.der.capellenskeppsbronskatt.seTel:+46 73 640 91 8128 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024SWITZERLANDCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Switzerland apply th

191、e economic employer concept for the establishment of wage tax withholding obligations?Yes.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Via practice and administrative instructions.When did your country adopt the economic employer

192、concept?It became applicable gradually and with regional differences over time.A first and major publication took place in 2003 and as from then at least in Zurich the concept applies.The concept was adopted at the Federal level in a Circular Letter from the Swiss Federal Tax Authorities that came i

193、nto force as from 2021.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?Yes.If so,how many days and for which period?There is a safe harbour rule that says that the economic employer consideration do

194、es not apply in case an intra-group assignment is limited to an absolute term of 90 days(irrespective of the actual workdays spent in Switzerland).Is the formal employer obliged to register and pay wage taxes?No.Can the economic employer register and report wage taxes on behalf of the formal employe

195、r?Yes.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?The economic employer concept clearly brings more administrative burden

196、 and work to business acting in an international environment.There was never a discussion at the political level whether such practice which undermines the effectiveness of double tax treaties is really in the best interest of the economy.Peter VogtTax Partnerpeter.vogttaxpartner.chTel:+41 44 215 77

197、 7729 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024UNITED KINGDOMCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does UK apply the economic employer concept for the establishment of wage tax withholding obligations?Yes.Is the concept implemented into national law or is it applied via practice or ba

198、sed on administrative instructions?Combination of all three.When did your Country adopt the economic employer concept?This concept has been adopted in the UK in respect of employees commencing work after 1 July 1995.Is there a threshold of days that an employee can work in your country for a domesti

199、c client without meeting the requirements of an economic employer?Strictly no,the requirement is a Day 1 obligation.Provided there is a double taxation agreement in place with the UK,the relevant conditions of the Dependent Personal Services Article are met in full,and a specific agreement(Short Ter

200、m Business Visitor Agreement or STBVA)is in place with the UK tax authorities requiring annual reporting of business visitors,the strict Day 1 requirement can be relaxed.Even where the UK is the economic employer it may be possible to apply the STBVA relaxation for isolated periods of up to 60 days(

201、in a tax year/rolling 12 month period),depending on the facts.The STBVA relaxation does not apply to employees of branches or overseas permanent establishments of the UK company.If so,how many days and for which period?As above,wage tax withholding is due from first day of arrival in the absence of

202、meeting the conditions for any relaxation and agreeing this with the UK authorities.Wage tax withholding will always be due where the individual is or becomes UK tax resident.Is the formal employer obliged to register and pay wage taxes?Yes,where the formal(legal)employer has a UK tax presence or UK

203、 place of business.Even when the formal employer has no UK presence,they will have to register to pay employee and employer social security(national insurance contributions)if based within the EU,and may choose to withhold wage income tax voluntarily.For non-UK formal employers based outside the EU

204、they can chose to voluntarily withhold and report employee wage taxes.Where the formal employer has no presence in the UK and the individual is working for a UK domestic employer,the UK domestic employer will be required to operate payroll and pay employee and employer social security(if due),and de

205、duct/pay income tax unless the tax relaxations outlined above apply.Can the economic employer register and report wage taxes on behalf of the formal employerAs above,there may be an obligation for the economic employer to report wage taxes on behalf of the formal employer on their existing payroll.T

206、hey can also act as an agent to register for the formal employer if this is administratively easier.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these req

207、uirements as burdening?See comments above.There are already UK reporting requirements for business visitors with wage taxes withholding requirements if the visitor is economically employed and spends more than 60 days in the UK.Claire MurrayAlvarez&Marsal TTel:+44 7443 267390Louise JenkinsAlvarez&Ma

208、rsal Tax Tel:+44 20 7070 064330 AFRICATAXAND SURVEY ON ECONOMIC EMPLOYER 2024LAST UPDATED:APRIL 202431 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024 RETURN TO CONTENTS PAGETAXAND SURVEY ON ECONOMIC EMPLOYER 2024MAURITIUSCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Mauritius apply the econom

209、ic employer concept for the establishment of wage tax withholding obligations?No.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Not Applicable.When did your Country adopt the economic employer concept?Not Applicable.Is there a thres

210、hold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?Not Applicable.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?Not Applicable.Can the economic e

211、mployer register and report wage taxes on behalf of the formal employer?Not Applicable.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as

212、burdening?Not Applicable.Feroz HematallyTaxand MTel:+230 213 9936Faraaz JauffurTaxand MTel:+230 405 0226 32 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024SOUTH AFRICACONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does South Africa apply the economic employer concept for the establishment of wage ta

213、x withholding obligations?No,South Africa does not apply the economic employer concept.However,if the formal employer is a non-resident and has a South African representative employer(i.e.a South African resident agent of the formal employer having authority to pay remuneration),the representative e

214、mployer will have wage tax withholding obligations in respect of any remuneration which it pays on behalf of the formal employer.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Not Applicable.When did your Country adopt the economic

215、employer concept?Not Applicable.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?Not Applicable.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and

216、pay wage taxes?The non-resident formal employer is obliged to register and pay wage taxes if it has a permanent establishment in South Africa.Can the economic employer register and report wage taxes on behalf of the formal employer?No,unless the economic employer is a representative employer of the

217、formal employer.The representative employer must report wage taxes in respect of any remuneration which it pays on behalf of the formal employer.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requiremen

218、ts etc.?Do the companies experience these requirements as burdening?Not Applicable.Jenny Klein ENSTel:+27 21 410 25 0033 AMERICASTAXAND SURVEY ON ECONOMIC EMPLOYER 2024LAST UPDATED:APRIL 202434 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024 RETURN TO CONTENTS PAGETAXAND SURVEY ON ECONOMIC EMPLOYER 2024ARGE

219、NTINACONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Argentina apply the economic employer concept for the establishment of wage tax withholding obligations?No.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Not Applicabl

220、e.When did your Country adopt the economic employer concept?Not Applicable.Is there threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?Not Applicable.If so,how many days and for which period?Not Applicable.Is the

221、 formal employer obliged to register and pay wage taxes?Not Applicable.Can the economic employer register and report wage taxes on behalf of the formal employer?Not Applicable.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,incr

222、eased administrative requirements etc.?Do the companies experience these requirements as burdening?Not Applicable.Ezequiel LipovetzkyBruchou&Funes de RTel:+54 11 4021-231135 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024CANADACONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Canada apply the econ

223、omic employer concept for the establishment of wage tax withholding obligations?No.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Canada does not apply the concept of economic employer,however the concept is incorporated into most o

224、f Canadas tax treaties with foreign countries.When did your Country adopt the economic employer concept?Not Applicable.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?There is no threshold of days u

225、sed by Canadian tax authorities to apply the economic employer concept.The economic employer approach is not based on a minimum number of days;however,there are certain tax treaties that permit exemptions from Canadian income tax on maximum employment income amounts earned in Canada(as an example,th

226、e exemption from Canadian tax on employment income earned in Canada if the total amount received does not exceed CAD10,000 in the calendar year,which is found in the Canada-US tax treaty).Even if the employment is exempt from Canadian tax,Canadian reporting and compliance is required.If so,how many

227、days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?Yes,all employers,resident or non-resident,must register(obtain a tax identification number and payroll account)and,unless an exemption is applied for and granted,withhold tax on the salaries paid

228、to employees performing work in Canada.Can the economic employer register and report wage taxes on behalf of the formal employer?Not Applicable.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirement

229、s etc.?Do the companies experience these requirements as burdening?Though Canada does not outright apply the economic employer concept on individuals that travel to work in Canada,there are tax reporting and compliance obligations applicable to foreign employers wishing to employ individuals in Cana

230、da or send employees to work in Canada,such as withholding tax.However,waivers may be available to non-resident employers or non-resident employees to be exempt from Canadian withholding rules(but not Canadian reporting and compliance rules)for non-resident employees who are working in Canada under

231、certain circumstances.Pamela CrossBorden Ladner GervaisPCTel:613.787.355936 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024COLOMBIACONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Colombia apply the economic employer concept for the establishment of wage tax withholding obligations?No.Is the conc

232、ept implemented into national law or is it applied via practice or based on administrative instructions?Not Applicable.When did your Country adopt the economic employer concept?Not Applicable.Is there threshold of days that an employee can work in your country for a domestic client without meeting t

233、he requirements of an economic employer?No.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?Wage taxes,social security contributions and income tax withholdings applicable over payroll payments are mandatory only for Colombian empl

234、oyers.All Colombian-sourced income will be subject to taxation in the country.There is a 183-day period according to which,the taxation rules may differ,triggering withholding obligations for the Colombian employer if the employee remains in the country for 183 days,consecutive or not,in any twelve-

235、month period.From the labor perspective,employees may claim the existence of a Colombian employment agreement if these conditions are met:If the services were rendered in Colombian territory;If the employee,while abroad,was continuously subordinated by their employer in Colombia;or,If the parties mu

236、tually agreed that the contractual relationship would be governed by Colombian provisions.If a judge declares that a Colombian employment contract exists,the employer will be obliged to register locally and make contributions to the social security system in favor of the employee.The registration to

237、 make such contributions will in turn have tax implications.The risk of these claims by employees is theoretical and should be analyzed based on the benefits and protection obtained by the foreign employee in Colombia,compared to their current contract abroad.Can the economic employer register and r

238、eport wage taxes on behalf of the formal employer?No,however,if the PE risk is triggered according to the commentaries stated below,the economic employer shall register before Colombian Tax&Social Security authorities in order to perform such duties.Comments regarding the impact of the“economic empl

239、oyer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?Colombian regulations state entities will have a Permanent Establishment(“PE”)in Colombia by incorporating a branch,workshop,or

240、 any similar establishment in the country,if incorporated,the PE will be subject to income tax on its worldwide income attributable to Colombia.Also,a foreign entity may have a Colombian PE if a person(including Colombian companies)acts on behalf of a foreign company and/or if such a person customar

241、ily has or exercises in Colombia an authority to conclude contracts on behalf of the foreign entity.This rule does not apply to agents of an independent status.Considering the above,if an individual travels for work to Colombia,and meets any of the criterion stated above,and/or the activities perfor

242、med in the country are not ancillary nor preparatory but part of the company purpose,PE risk will be triggered.Considering this situation,foreign employers shall watch closely the PE risk derived by the activities performed by the workers that travel to Colombia for work,if triggered,the company sha

243、ll register in Colombia for all tax&social security purposes,and it will be subject to taxation in the country.Mauricio Pieros PerdomoGmez-Pinzn ATel:+57 601 319 2900 Ext.921Carolina Bobillier CeballosGmez-Pinzn ATel:+57 601 319 2900 Ext.16537 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024MEXICOCONTACTLAST

244、 UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Mexico apply the economic employer concept for the establishment of wage tax withholding obligations?No.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Not Applicable.When did your cou

245、ntry adopt the economic employer concept?Not Applicable.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?Not Applicable.If so,how many days and for which period?Not Applicable.Is the formal employer

246、obliged to register and pay wage taxes?No,the formal employer is not obliged to register and pay wage taxes as long as it is not a Mexican resident for tax purposes.Can the economic employer register and report wage taxes on behalf of the formal employer?Not Applicable.Comments regarding the impact

247、of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?As mentioned,Mexico does not apply the economic employer concept in domestic tax law.However,if a non-resid

248、ent employee spends more than 183 days in Mexico during a twelve month period,then that employee will be obligated to register before the Mexican tax authorities and pay the corresponding income tax due.There is not an obligation for the non-resident employer to register in Mexico and withhold incom

249、e tax on wages earned by the employee.Luis MonroyMijares,Angoitia,Corts y F.mxTel:+52 55 5201 746638 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024PERUCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Peru apply the economic employer concept for the establishment of wage tax withholding obligatio

250、ns?No,we do not apply the economic employer concept.Only Peruvian formal employers are legally liable to withhold wage taxes.As a general rule,expat employees that remain in the foreign employer payroll and that receive their salary abroad from such employer,will be obliged to pay income taxes direc

251、tly to the Peruvian Tax Administration for the activities performed within Peru(Peruvian-source income).As an exception,short-term assignments that do not exceed 183 days within a 12-month period are usually tax-exempt under Double Tax Treaties provided that certain conditions are met.Peru has enter

252、ed into Tax Treaties with the following States:Brazil,Canada,Chile,Korea,Mexico,Portugal,Switzerland,Japan and the Andean Community(Bolivia,Colombia and Ecuador).Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Not Applicable.When did

253、 your Country adopt the economic employer concept?Not Applicable.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?No.As mentioned before,the economic employer concept does not apply in Peru.The 183-d

254、ay rule only applies to determine the tax residency of the employee and the applicable tax rate on labor income.Foreign residents that remain in the country for less than 183 days within a 12-month period will be subject to a flat rate of 30%over the portion of their salary that qualifies as Peruvia

255、n-source income,whereas Peruvian tax residents are subject to a progressive accumulative scale of 8%,14%,17%,20%and 30%(on an annual basis)over labor income.Special rules might apply in accordance with Double Tax Treaties.If so,how many days and for which period?Not Applicable.Is the formal employer

256、 obliged to register and pay wage taxes?Yes.Can the economic employer register and report wage taxes on behalf of the formal employer?No.Only Peruvian formal employers are responsible of withholding and paying wage taxes.On the other hand,foreign formal employers are not obliged to register nor pay

257、any wage taxes due on expat employees working in Peru.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?Not Applicable.Javier d

258、e la VegaGTel:+51 1 399 2600Ana SousaGTel:+51 1 399 260039 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024UNITED STATESCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does the United States apply the economic employer concept for the establishment of wage tax withholding obligations?No.Is the concept

259、 implemented into national law or is it applied via practice or based on administrative instructions?Not Applicable.When did your country adopt the economic employer concept?Not Applicable.Is there a threshold of days that an employee can work in your country for a domestic client without meeting th

260、e requirements of an economic employer?Not Applicable.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?Not Applicable.Can the economic employer register and report wage taxes on behalf of the formal employer?Not Applicable.Comments

261、 regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?Not Applicable.James DeetsAlvarez&Marsal TTel:+1 214 438 101740 ASIATAXAND SURVEY ON

262、ECONOMIC EMPLOYER 2024LAST UPDATED:APRIL 202441 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024 RETURN TO CONTENTS PAGETAXAND SURVEY ON ECONOMIC EMPLOYER 2024AUSTRALIACONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Australia apply the economic employer concept for the establishment of wage tax w

263、ithholding obligations?Australia does not have an“economic employer”concept for domestic law purposes in relation to withholding obligations of employers in relation to their employees(referred to a Pay-As-You-Go,or PAYG withholding,from an employees salary and wages).Rather,whether an obligation to

264、 withhold exists under Australian domestic law is determined by reference to the employees individual circumstances,including whether he or she is an employee of any entity applying Australian common law principles.Where a non-resident of Australia who is employed by a non-Australian resident entity

265、 travels to Australia for work,the short-term employment exception in Australias double tax agreements(DTAs)may apply.For the purposes of the exception,the maximum number of days when the employee may be present in Australia and the time period within which the number of days are counted may vary,bu

266、t the exception is generally limited to periods less than or equal to 183 days in any 12 month period.The public guidance issued by the Australian Taxation Office(ATO)regarding the identification of“employer”in the context of the short-term exception in Australias tax treaties(Taxation Ruling TR 201

267、3/1)has not yet been updated to reflect recent judicial decisions and legislative developments,and accordingly some uncertainty exists around the ATOs position in this regard.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?While ther

268、e is no domestic law concept of“economic employer”,the concept of an“employee”for Australian PAYG withholding purposes is not defined in the relevant tax legislation and its interpretation is derived from Australian common law principles.When did your Country adopt the economic employer concept?Not

269、Applicable please refer above.Is there threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?As noted above,Australia does not have the concept of an“economic employer”.A case-by-case analysis is required in each ca

270、se,and the application of any relevant DTA(including the short-term employment exception where relevant)must be considered.If so,how many days and for which period?Not Applicable as there is no“economic employer”concept please refer above.Is the formal employer obliged to register and pay wage taxes

271、?This depends on whether the foreign employer is found to be the individuals employer for Australian tax purposes,the individuals circumstances and the terms of any applicable DTA.Can the economic employer register and report wage taxes on behalf of the formal employer?Not Applicable as there is no“

272、economic employer”concept.However,if a non-resident entity is an employer for Australian tax purposes and is required to withhold PAYG,it may be able to arrange for its Australian associate or affiliate to undertake the PAYG withholding obligations on its behalf.Comments regarding the impact of the“

273、economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?While there is no“economic employer”concept in Australia,the Australian tax treatment of individuals who travel fo

274、r work to Australia(including their status as common law employees of an Australian resident entity and the impact of Australias double tax treaties,where relevant)should be considered on a case by case basis,having regard to the individuals specific circumstances.Mark PayneCorrs Chambers WestgarthM

275、.auTel:+61 2 9210 6800Julia BolodurinaCorrs Chambers W.auTel:+61 2 9210 6817.42 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024CHINACONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does China apply the economic employer concept for the establishment of wage tax withholding obligations?Yes.Is the conce

276、pt implemented into national law or is it applied via practice or based on administrative instructions?National law.When did your country adopt the economic employer concept?2019.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirem

277、ents of an economic employer?Yes.If so,how many days and for which period?90 days.Is the formal employer obliged to register and pay wage taxes?No,foreign formal employer cannot register in China.However,wage taxes are required via individual filing.Can the economic employer register and report wage

278、 taxes on behalf of the formal employer?No.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?We suggest the breakdown of payrol

279、l and non-cash benefits to be well prepared.Kevin WangHTel:+8621 6447 7878-526Eloise PanH+86 21 6447 787843 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024INDIACONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does India apply the economic employer concept for the establishment of wage tax withholding

280、obligations?No,India does not apply economic employment concept for the purpose of withholding tax obligations.In India,though the concept of economic employer is not recognized in law,the same may be relevant while undertaking Permanent Establishment analysis of foreign enterprise in India.While th

281、ere are no prescribed rules in this respect,tax authorities generally refer to OECD commentary while undertaking Permanent Establishment analysis.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Not Applicable.When did your Country ad

282、opt the economic employer concept?Not Applicable.Is there threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?Not Applicable.If so,how many days and for which period?Not Applicable.Is the formal employer obliged t

283、o register and pay wage taxes?As per Indian tax laws,the person responsible for paying salary to the employee(i.e.the formal employer)is required to undertake withholding tax compliances in India.Can the economic employer register and report wage taxes on behalf of the formal employer?No,economic em

284、ployer cannot undertake withholding tax compliances on behalf of the formal employer.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as bu

285、rdening?Salary income earned by individuals while travelling to India for work may be taxable in India.Separately,India has also been experiencing rise in people opting to work remotely from India.In both the above cases,person responsible for making above salary payment may be liable to withhold ap

286、propriate tax and undertake related compliances.Further,such individuals may also be liable to obtain tax registration and file tax returns in India.Rohit JainEconomic Laws Practice RohitJainelp-Tel:+91 90046 04350Rahul CharkhaEconomic Laws Practice rahulcharkhaelp-Tel:+91 74004 33388Mitesh JainEcon

287、omic Laws Practice miteshjainelp-Tel:+91 98202 99298Nishant ShahEconomic Laws Practice NishantShahelp-Tel:+91 90046 0432344 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024INDONESIACONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Indonesia apply the economic employer concept for the establishment

288、of wage tax withholding obligations?No.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Not Applicable.When did your country adopt the economic employer concept?Not Applicable.Is there a threshold of days that an employee can work in

289、your country for a domestic client without meeting the requirements of an economic employer?Not Applicable.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?Not Applicable.Can the economic employer register and report wage taxes on

290、behalf of the formal employer?Not Applicable.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?At the moment Indonesia has not

291、adopted the economic employer concept.For an assignee to be able to work in Indonesia,a working permit and stay permit is required.Usually,it is sponsored by a resident entity who also bears the remuneration or wage of the particular assignee.Once the assignee becomes Indonesian Tax Resident,then ge

292、nerally he has the obligation to self-assess reporting his worldwide income in Indonesia.Henrietta KristantoPB T Tel:+62 21 835 636345 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024JAPANCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Japan apply the economic employer concept for the establishme

293、nt of wage tax withholding obligations?No.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Not Applicable.When did your Country adopt the economic employer concept?Not Applicable.Is there threshold of days that an employee can work in

294、 your country for a domestic client without meeting the requirements of an economic employer?Not Applicable.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?Not Applicable.Can the economic employer register and report wage taxes on

295、 behalf of the formal employer?Not Applicable.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?Not Applicable.Takashi SaidaNag

296、ashima Ohno&Tsunematsutakashi_Tel:+81-3-6889-722146 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024MALAYSIACONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does Malaysia apply the economic employer concept for the establishment of wage tax withholding obligations?We have a“deemed employer”provision.Th

297、is term is widely defined as a person to whom or for whose benefit a service is rendered or performed by another person,whether or not he employs that other person or is responsible for paying remuneration to that other person.A deemed employer is required to comply with the relevant employers tax o

298、bligations including wage tax withholding obligations.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?The national law,Income Tax Act,1967(“ITA”).When did your Country adopt the economic employer concept?Since the enactment of the IT

299、A.Is there threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?No.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?Yes,if the formal employer ha

300、s a presence(eg.a permanent establishment)in Malaysia.Can the economic employer register and report wage taxes on behalf of the formal employer?No,if the formal employer has a presence in Malaysia.However,if the formal employer does not have a presence in Malaysia,the employers tax obligation will t

301、hen be fulfilled by the deemed employer.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?The obligations of a deemed employer

302、do not impose any administrative burden on the individual(employee).As an employee who is liable for personal tax in Malaysia,the employee will be required to file annual personal tax return and to settle any balance of tax payable(i.e.employees tax obligations).Lim Kah FanTricor TaxandKah.Fan.L Tel

303、:+603 2783 810247 TAXAND SURVEY ON ECONOMIC EMPLOYER 2024PHILIPPINESCONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does the Philippines apply the economic employer concept for the establishment of wage tax withholding obligations?No.Philippine tax authorities have relied on bilateral tax tre

304、aties in determining the taxation or exemption from income tax of the income of foreign individual assignees in the Philippines.However,the economic employer concept has been applied by the tax authorities when there has been a recharge of the cost of remuneration to the Philippine entity such that

305、the host entity will be considered the economic employer and the employee cannot claim tax exemption.Is the concept implemented into national law or is it applied via practice or based on administrative instructions?Not Applicable.When did your Country adopt the economic employer concept?Not Applica

306、ble.Is there a threshold of days that an employee can work in your country for a domestic client without meeting the requirements of an economic employer?Not Applicable.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?The formal em

307、ployer is obliged to withhold the taxes on the compensation of the employee as it is designated as the withholding agent for this purpose.Can the economic employer register and report wage taxes on behalf of the formal employer?Not Applicable.Comments regarding the impact of the“economic employer co

308、ncept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?The application of the economic employer concept in the Philippines may cause conflict in the determination of the obligation and liab

309、ilities of an employer.The four-fold test in determining the existence of an employer-employee relationship from a Philippine labor law perspective may not necessarily align with the economic employer concept.Mary Rose V.PascualSalvador LTel:+632 8811 2500 ext:21848 TAXAND SURVEY ON ECONOMIC EMPLOYE

310、R 2024SOUTH KOREACONTACTLAST UPDATED:APRIL 2024 RETURN TO CONTENTS PAGE Does South Korea apply the economic employer concept for the establishment of wage tax withholding obligations?No.However,finding a permanent establishment in South Korea may an impact on the relevant tax analysis.Is the concept

311、 implemented into national law or is it applied via practice or based on administrative instructions?Not Applicable.When did your country adopt the economic employer concept?Not Applicable.Is there a threshold of days that an employee can work in your country for a domestic client without meeting th

312、e requirements of an economic employer?Not Applicable.If so,how many days and for which period?Not Applicable.Is the formal employer obliged to register and pay wage taxes?No,to the extent that the formal employer does not have a permanent establishment in South Korea.Can the economic employer regis

313、ter and report wage taxes on behalf of the formal employer?No.Comments regarding the impact of the“economic employer concept”on individuals that travel for work to your country,i.e.,increased administrative requirements etc.?Do the companies experience these requirements as burdening?Not Applicable.

314、Kyu Dong KimYTel:+82 2 528 554249 Taxand Economic Interest Grouping 2024 Registered office:1B Heienhaff,L-1736 Senningerberg-RCS Luxembourg C68V2:12-04-24Your global tax partnerABOUTTAXANDTaxand is a global organisation comprising top tier local independent tax advisory firms who together provide hi

315、gh quality,integrated tax advice to clients worldwide.Overall there are more than 700 tax partners and over 3,000 tax advisors across 48 countries,focussed on understanding you and your business needs;collaborating to deliver tailored,practical local and international tax advice,in consideration of your strategic goals.