Lately we have received various questions from Companies on their payroll. We notice that the payroll is not executed most efficiently. Is some cases there was no optimization, resulting in a high effective tax rate. In other cases, the payroll was simply not compliant.
‘In our experience, an expat/executive should have an effective payroll tax rate of around 30% or less. If it is higher, the payroll is likely not optimized.’
The payroll set up for an expatriate or executive is a frequent discussion topic in Companies. Our firm has helped Companies local and foreign with the transition to a more efficient Expat/Executive payroll. Each time we aim to optimize each payroll within the confines of the Law and Tax Practice, providing the best-case scenario for both the employee and employer