Expatriate working – a growing trend
The trend of globalisation has naturally caused an increase in the number of senior expatriate executives who work outside their home country.
Remuneration – what you need to consider
There are a number of remuneration issues that are likely to be of concern to such executives, some of which are:
- The wish to minimise tax payments which they have to pay in their host country, while simultaneously reducing, if possible, the tax payable in their home country thus avoiding a scenario of their income being fully taxed in both countries
- Analysing the benefit of contributing to either the ‘host’ or ‘home’ countries social security system – if the benefits are clearly weighted in their favour
- Deciding the best method and, possibly, country in which to have their salary paid – particularly if there are exchange controls to factor in
- Arranging for remuneration to be paid in a ‘hard’ currency, only converting to a ‘soft’ currency such part of their remuneration as may be required for their immediate living expenses in their host country.
Jersey Offshore employment companies – benefiting from knowledge
One way in which these remuneration issues and concerns can be addressed, is through the establishment in Jersey of an offshore employment company.
- A Jersey Offshore employment company directly employs the executives concerned and sub-contracts their services to the executives employing company
- The Employment Company might be a subsidiary or associate of the contractor; or it might be owned by the executive; alternatively it might be owned by a purpose trust established by the Contractor or by the executive
- Volaw is able to assist in planning for, establishing and managing and administering the Employment Company.
Volaw Trust Company
- Has considerable experience gained over many years in setting up and operating a variety of types of offshore employment companies
- Whether employing just one person or employing hundreds of people, Volaw has established systems designed to ensure the timely and prompt payment of salary, pension and other entitlements as they fall due. We have established links with a number of banks through which these payments are made.
Your professional team
- Volaw will happily work together with your existing professional advisers to help to devise the most appropriate type of company and ownership structure for your particular needs
- We can help to set up that company – including applying for all necessary permits
- Once set up, we can help to manage your company and provide administration functions such as salary payments, record keeping and accounting.
We have established a dedicated team of professionals who are able to help you with establishing and administering all such employee benefit arrangements. For further information, please contact Mark Healey, Simon Perchard or Richard Fagan of Volaw.