Patel noted that in the last two years there has been a significant increase in the number of expatriates relocating out of Hong Kong and back to the UK. “In the last year, we’ve seen a 50% increase in the number of Hong-Kong-based British clients looking for tax advice to prepare for short-term and long-term relocation back to the UK,” she said.
She added, “Recently, there has been a lot more exchange of information between the two jurisdictions of HK and the UK—and HR needs to be mindful of tightening compliance issues surrounding staff who may be employed in Hong Kong, whilst residing overseas.”
The article noted it is important for HR professionals to keep track of their employees’ travel arrangements so they can stay compliant with tax regulations. Patel advised, “Get local advice to ensure you understand each country’s compliance requirements and keep on top of which countries your staff are visiting and how long they are going to spend there.”
In the UK, for example, if an employee’s duration of stay is less than 30 days only basic information is required. However, compliance requirements increase depending on the employee’s length of stay in the UK and after 183 continual days stay, they become a UK resident. In such cases, significantly more information is required for compliance reporting including salary details, PAYE, withholding tax obligations and basic personal information about the employee.
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Article first seen in the HR Magazine (online)