May has been a particularly active month on the regulatory front, witnessing a significant telecommunications amendment in The Netherlands, a Bill focused on “no tax” corporations in Denmark, the introduction of a new immigration system in Japan, and alterations to pension plans in Australia. Our May newsletter also covers the new rules on equity incentive plans and data protection guidelines in China and a welcome tax development for Hong Kong resident employees working in China.
Those with “payroll-only” registrations anywhere in Europe will want to pay close attention to the article on heightened scrutiny of local activities in Sweden and Belgium as an example of an EU-wide trend. It’s of increasing importance that clients have a clear understanding of the activities undertaken by their local employees, as they can have direct impact on an employer’s corporate tax and social insurance liabilities, as well as VAT and commercial insurance implications. HSP recommends a review of such registrations on an annual basis.
With markets in flux around the world and tax authorities on high alert for taxable presence, we’re fielding more questions about entity structuring than in the past. Those considering new overseas expansion may find the high level checklist of considerations included in this newsletter helpful in the due diligence process.