Success stories
Japanese global investment bank: tax treatment of employee income who were returning to Spain from the English branch
OBJECTIVE
- In accordance with the company’s tax equalization policy, determine whether in the tax year corresponding to the end of the posting, the worker was required to pay back taxes to the company or vice versa, for the salary that the company paid.
METHOD
- Study of the tax equalization plan for workers originally hired in Spain, when they are posted to work to another.
- Calculation of final taxes to be paid in Spain and comparison with the taxes already subject to payment in the United Kingdom and with the hypothetical tax initially established in our country.
- Explanation of the calculations to both the company and to the worker, to obtain his agreement and to be able to carry out the compensation of these tax credits between them.
RESULT
- That the worker would reimburse the Spanish subsidiary, those taxes which had been returned to him directly by HM Revenue and Customs in England, for deductions unduly entered in that country, when the worker ceased being a resident. And that the Spanish subsidiary could compensate the English branch once the money was properly recovered.
Labour, tax, accounting and legal advice with international standards and local
proximity
proximity
Where to find us.
Paseo de la Castellana, 163, 9º
28046 · Madrid · Spain
28046 · Madrid · Spain
Email us
Customer hours
Monday to Thursday 8:30h · 18:00h
Friday: 8:30h · 15:00h
Friday: 8:30h · 15:00h
Talk to us
+34 915 611 422