We had a great launch at a very busy Totally Expat Show and were pleased to talk to the many people that came to see us.  The day culminated in winning two awards, including Exhibitor of the Show, a truly great start to this unique new business.

Guide Dogs are our Charity of the Year and we were delighted that the wonderfully behaved puppies and dogs in training got so much attention and their coordinator made several contacts for more companies to support them. The day was capped off by Dave Galletly winning the £1,000 cash prize at the end of the show.  A triple win for the TIME Relocation stand.

TIME is an on-line portal providing cost effective global relocation to corporate clients, giving real time visibility of assignees status and the individual’s full control of their move.

Although originally intended for low cost moves, due to its incredible flexibility and unique costing mechanisms it is also ideally suited for very small global mobility programmes, large graduate or rotation programmes, lump sum and one way moves.  The system manages the assignees so you don’t have to and with an endless number of ways that it can be tailored to a company it can be adapted to suit all levels of assignees and size of programme.

With the cost of each service shown before being selected, you can see the total cost as you go along, helping you pick and choose which elements you want on a case by case basis.  With remuneration elements also included, you really can see the total cost of the assignment as you’re choosing the services.  No costly software to purchase and no charge for using the pricing tool.

Please feel free to contact me if you would like more details and a demonstration of the system and what we could do for you.

Val Gascoyne
Managing Director
www.timerelocation.com

The idea is simple, it’s the technology that does the hard work.

The Australia government has announced that its new employer sanctions law will take effect June 1, 2013. Employers will be subject to no-fault civil penalties for noncompliance, and corporate officers may be held individually liable. There will also be a new administrative enforcement procedure and new guidance for employers on what steps they should take to verify employment authorization. 

Businesses that are found to have employed, or referred for employment, a foreign national who lacks the appropriate visa or to have allowed foreign nationals to work in breach of their visa conditions would be subject to fines regardless of whether the business knew or was reckless about verifying the foreign national’s work entitlements. The Department of Immigration and Citizenship will have the authority to issue administrative infringement notices to noncompliant employers, as an alternative to pursuing court proceedings against them.

The legislation will introduce statutory defenses for businesses, executives and others who take reasonable steps at the appropriate times to verify a foreign national’s migration status and work permission.

What This Means for Employers

In order to prepare for these reforms, employers should ensure they have procedures in place to verify the work eligibility of all new employees.

Fragomen can assist clients directly with compliance management of all temporary visa holders, including the verification of work entitlements. Fragomen can also provide employment authorization verification training that is tailored to clients’ foreign worker population.

Source: Fragomen

Business travelers who do intend to visit the West Bank should apply for a visit permit at least one month in advance. Applications must be lodged with the Coordinator of Government Activities in the Territories Unit (COGAT), which is tasked with administering government policy in the West Bank.

This alert has been provided by the BAL Global Practice group and our network provider located in Israel. For additional information, please contact GlobalVisaGroup@balglobal.com.

Source: Berry Appleman & Leiden LLP

On 19 April 2013, the State Administration of Taxation (SAT) of the People’s Republic of China (PRC) issued Announcement 19 to provide guidance on when cross-border secondments of expatriates by foreign enterprises into PRC may create a PRC taxable presence.1 Announcement 19 is a welcome development for multinational companies (MNCs) doing business in China. It reduces uncertainty as to when a foreign enterprise might create PRC Corporate Income Tax (CIT) exposure through its secondment arrangements. It may also facilitate the process of obtaining tax clearance by a Chinese company when it seeks to make reimbursement remittances overseas pursuant to secondment arrangements.

Various regulatory “gaps” have now been filled by Announcement 19. According to the new circular, the “fundamental criterion” for the home entity to be regarded as providing services through its own staff in the PRC, and thus having a taxable establishment or place of business in the PRC, is whether the home entity bears all or part of the responsibilities and risks in relation to the work products of the secondees, and whether it is the home entity that normally reviews and appraises the job performance of the secondees. In the double taxation agreement (DTA) context, if the establishment or place of business through which the services are provided is of a relatively fixed and permanent nature, it will be regarded as a permanent establishment (PE) for the home entity in the PRC.

Beyond the “fundamental criterion,” Announcement 19 also prescribes several factors (“reference factors”) in deciding whether the secondees are in substance the employees of the home entity.

For the complete story, see “Clarifications Issued on When Secondment Creates Chinese Taxable Presence for Foreign Enterprises” in China Tax Alert (Issue 9, May 2013), published by the KPMG International member firm in the People’s Republic of China at: http://www.kpmg.com/CN/en/IssuesAndInsights/ArticlesPublications/Newsletters/ChinaAlerts/Documents/china-tax-alert-1305-09-Chinese-taxable-foreign-enterprises-v2.pdf

Footnote:

1 Announcement on Issues Concerning Levying Corporate Income Tax on Services Provided by Non-residents through Seconding Personnel to China, SAT Announcement [2013] No. 19 (Announcement).

Source: KPMG

Normative Resolution, No. 104, makes several changes to the regulations that govern existing work visas. The changes apply to all work visas and include:

-          In a move to speed up work visa approvals, the  Ministry of Labor (MTE) no longer requires  Non-Brazilian documents, such as university diplomas and letters of reference,  to be legalized prior to submission of the work visa application. However, the legalized and translated originals must still be submitted to the MTE within 60 days of the filing. Hence, the process need not be delayed pending consular legalization of the documents abroad.

-          Employee transfers and changes in function must be communicated to the Ministry of Labor within 15 days. The company must provide an amended copy of the employee’s work contract.

-          If a foreign national submits a new visa application while holding another visa, the Ministry of Labor will automatically cancel the original visa before approving the new one.

-          Work contracts that fall under Normative Resolution No. 99 are now permitted to have undetermined or determined expiration dates.

-          Work visas can now be cancelled via email.

-          Signature notarizations (“reconhecimento de firma”) are no longer required, except when specifically required by law.

-          Foreign administrators who will represent Brazilian financial institutions must present an agreement letter from the Brazilian Central Bank (BACEN) when applying for a work visa.

-          Foreign administrators who will represent air transport companies must present an agreement letter from the Brazilian National Agency of Civil Aviation (ANAC) when applying for a work visa.

-          Individuals will now be able to submit work visa requests directly to the Ministry of Labor.

-          Work visa applications will be able to be submitted electronically.

The government also published Normative Resolution, No. 103, creates a new “summer job” visa category for postgraduate students interested in doing short-term work in Brazil over summer vacation. To be eligible, the student must be enrolled in a masters- or doctorate-level course that requires at least 360 hours of instruction. In addition, the student must have a contract with a Brazilian company. The new visa will be valid for 90 days and cannot be renewed.

It is not clear yet how these new resolutions will be interpreted or implemented by the government, especially in reference to electronic processing. BAL will provide updates as they become available.

This alert has been provided by the BAL Global Practice group in Brazil. For additional information, please contact brazil@balglobal.com.

Source:  Berry Appleman & Leiden LLP

With over 1100 delegates, yesterday’s London Totally Expat Show was the largest Global Mobility event ever held in Europe. We will be posting photos shortly but first here are the winners of all the various competitions and prize draws held during the day.

Big congratulations to Dave Galletly from the Guide Dogs for the Blind who scooped our £1,000 cash prize after being randomly selected from all of our attendees who visited at least 10 of  our Lead and Platinum Sponsor’s stands.

Congratulations also to Time Relocation who won our overall prize for “Exhibitor of the Show”. The following is the full list of Exhibitor Stand Winners as voted by our prestigious Stand judges.

Exhibitor Stand Winners:

Best Stand Design & Appearance (Large Stand) – Won by TIME Relocation

Best Stand Design & Appearance (Small Stand) – Won by Skyline Worldwide Accommodations

Best Use of Technology – Won by Expat Tracker

Most Informative Display – Won by NatWest

Most Engaging Exhibition Team – Won by HSBC Expat

Exhibitor of the Show – TIME Relocation

And congratulations to everyone who won our exhibitor competitions and prize draws.

Exhibitor Prize Draw Winners:

Aetna (iPad mini) – Won by Fran Murphy of ENI International Resources

Equus (Bose Noise Cancelling Headphones) – Won by Sandra Aviles of Visa Management

HSBC (iPad & bespoke leather cover) – Won by Kelly McFadden of BG Group

Interdean (2 Tickets for a trip up the Shard x 3) – Won by Peter Lambert of BAE Systems, Lucy Thryssell of Aegis Network, Kerry Cook of Siemens

Jam (Bottle of champagne) – Won by Natasha Barker of Siemens

Skandia (Bottle of champagne) – Won by Beth Oakes of Equus

TIME Relocation (Sanctuary Spa vouchers) – Won by Debbie Scammell of GSK

Autosource & Readydrive (Kindle fire) – Won by Alistair Hunt of AGS Fourwinds

The visa application charge for subclass 457 visa applications will increase to AU$900 (from AU$455), effective July 1, 2013. Government programs to monitor employer compliance with 457 program requirements will receive increased funding. The new fees and other immigration changes were announced in the 2013-2014 budget.

The visa application charge for subclass 457 visa applications will nearly double for applications submitted on or after July 1, 2013, the Australian government announced Wednesday in its 2013-2014 budget. The Fair Work Ombudsman (FWO) will receive additional funding for subclass 457 compliance activities.

The overall number of permanent migration visas available in 2013-2014 will remain at 190,000. The total number of employer-sponsored migration visas will be 128,550, a decrease of 700 that will be reallocated to family-sponsored programs. More Work and Holiday program visas will be available for applicants from Malaysia and Indonesia.

Visa Application Charge Increases

The visa application charge for subclass 457 visa applications will increase to AU$900 (from AU$455). This will be the second significant increase in 457 application fees this year; in January, the fees increased 30 percent.

Significant fee increases are also expected for other temporary and permanent visa categories, though the exact amounts have not been announced. Later this year, the government is expected to implement a fee for each dependent included in a principal applicant’s visa application, across all visa categories. The amount of the dependent fee has not been announced.

The new fees are part of a government effort to shift costs of the country’s visa system onto applicants and away from taxpayers. Fragomen is working to identify client cases in which applications can be submitted prior to July 1 to avoid the fee increase.

Additional Funding For Fair Work Ombudsman

The FWO will receive additional funding of AU$3.4 million over the next four years to accommodate its new 457 program monitoring powers.

The FWO is an independent agency responsible for ensuring compliance with national workplace relations laws and that all workers in Australia receive correct wages and entitlements. In March 2013, it was announced that the FWO would be given powers to monitor and enforce compliance with 457 visa regulations, particularly whether sponsored foreign employees are working in their most recently nominated position and are paid the market salary rates specified in their visa applications. Fair Work Inspectors have the power to enter business premises at any time during work hours and request to inspect any relevant documents or interview any person.

More Subclass 462 Work and Holiday Visas for Malaysia and Indonesia

The number of places available in the Work and Holiday program to applicants from Malaysia and Indonesia will increase to 1,000, from 100, as part of the Australia in the Asian Century program. The Work and Holiday visa program allows young individuals to take extended holidays in Australia and authorizes them to work for any one employer for up to six months. The number of visas available in this program are capped based on reciprocal country arrangements.

Source: Fragomen

In addition, on 13 May 2013, the Treasurer and the Minister for Disability Reform, Jenny Macklin, released draft legislation to enact the proposed increase of the Medicare Levy to fund DisabilityCare Australia, the government’s National Disability Insurance Scheme (NDIS).2 If this legislation is enacted, the Medicare Levy will increase from 1.5 to 2 percent of taxable income from 1 July 2014. This revenue will go into the newly created DisabilityCare Australia Fund, which will fund the implementation of the National Disability Insurance Scheme Act 2013.

Treasury is not seeking submissions on the proposed legislation, which is slated to be introduced into Parliament on 15 May 2013.

This Flash International Executive Alert focuses on the measures in the budget impacting individuals – including international assignees – and multinational employers.

With no changes planned for personal income tax brackets, the rise in the Medicare Levy, and the FBT rate, and the capping of the work-related self-education expenses deduction(as well as other measures), the government is aiming to raise revenues while in effect chipping away at personal disposable incomes. These policies could lead to a slight increase in international assignment costs for companies with assignees to and from Australia who are taxable in Australia.

For a complete summary of the Budget, see the Web page for the ‘Federal Budget 2013” published by the Australian member firm of KPMG International. Also, see:

http://www.kpmg.com/au/budget

Personal Income Tax Rates

Taxable income thresholds and marginal tax rates for residents for the year commencing 1

July 2013, remain the same as for 2012 and are shown in the table below. (All dollar

figures expressed are Australian dollars.)

Taxable income ($)      Rate (%)

0 – 18,200                   0

18,201 – 37,000          19

37,001 – 80,000         32.5

80,001 – 180,000        37

180,001+                     45

Note: Excludes 1.5 percent Medicare levy

The government also announced that the thresholds and marginal tax rates for nonresidents will remain the same as for 2012 (see the table below).

Taxable income ($)      Rate (%)

0 – 80,000                   32.5

80,001 – 180,000        37

Over 180,000              45

Increase in Medicare Levy

From 1 July 2014, the Medicare Levy will increase from 1.5 percent to 2 percent of taxable income. The current relief for low-income earners and other exemptions from the Medicare Levy are to remain in place. The Medicare Levy low-income threshold for families will increase from 1 July 2014.

As noted above on page 1, the increase in the Medicare Levy will be used to fund DisabilityCare Australia. An agreement in relation to DisabilityCare has been reached with all states and territories with the exception of Western Australia.

Other Personal Tax Changes

• The net medical expenses tax offset will be phased out.

• The discount for voluntary and up-front HECS-HELP repayments will be removed from 1 January 2013.

• A 10-percent non-final withholding tax will apply on disposal of Australian residential property by foreign residents for transactions exceeding $2.5 million.

Work-Related Self-Education Expenses

The government announced in April that from 1 July 2014, deductions for work related self-education expenses would be capped at an annual amount of $2,000 per person. This is expected to save approximately $514 million over the forward estimates.

Family Payments

• The Baby Bonus will be removed and replaced with a Family Tax Benefit Part A payment for each child.

• The general increase in the Family Tax Benefit Part A announced in last year’s budget will not proceed.

Fringe Benefits Tax (FBT)

Changes to personal income tax measures are expected to impact employers as follows:

• With the increase in the Medicare Levy applying from 1 July 2014, there will also be an increase in the FBT rate to 47 percent, effective from 1 April 2014. This will bring the FBT gross-up rates to 2.0802 where an employer is entitled to a GST credit and to 1.8868 where an employer is not entitled to a credit.

• The government has specifically provided that the changes to deductions for work related selfeducation expenses will not impact the current FBT treatment for employers for education and training provided to employees (with the exception of benefits provided under a salary packaging arrangement).

Footnotes:

1 For more on the budget, see: http://www.budget.gov.au .

2 See the 13 May 2013 media release at: http://www.treasurer.gov.au/wmsDisplayDocs.aspx?doc=pressreleases/2013/061.htm&PageID=003&min=wms&Year=&DocType=0 .

Source: KPMG

The current six visa categories will be consolidated into three, with several subcategories under each, and new visa names will result. New business visa categories will also be created. The changes will take effect on June 24.

The Colombian Ministry of Foreign Affairs issued a new law that will restructure the current visa regime. Changes include new names for visas and a total of three visa categories, down from the current six. The new law will take effect on June 24 but is not expected to affect document requirements or processing times for employers and foreign workers. 

The current six visa categories will be consolidated into three: Temporary TP, Business NE and Resident RE. The three categories will each have several subcategories.

Temporary TP Category. This category will include subclasses for temporary workers, interns, students, religious workers, volunteers, property owners, pensioners, refugees, individuals involved in adoption proceedings, and participants in academic, artistic, scientific and cultural events.

The temporary worker visa will be the TP-4 visa, which will be valid for up to three years. The current temporary worker visa is valid for just one year.

Short-term technical workers will seek the new TP-13 visa, which will allow stays of up to 180 calendar days per year.

Business NE Category. Business visa options will expand with the creation of several new subcategories.

The multiple-entry NE-1 visa, valid for up to three years, will be available to entrepreneurs and investors establishing new business in Colombia.

The NE-2 visa will be open to foreign nationals engaged in business dealings related to treaties, including the Pacific Alliance trade bloc, of which Chile, Colombia, Mexico and Peru are members. Representatives of foreign government institutions will be eligible for the NE-3 visa. The NE-2 and NE-3 visas will allow foreign nationals to receive local remuneration and establish residence in Colombia for up to two or four years respectively.

The NE-4 visa, valid for up to five years, will be available to high-level executives of multinational corporations seeking to invest and promote business in Colombia.

Resident RE Category. The Resident RE category will provide a path to permanent residence for the following groups:

• Parents of children who were born in Colombia;
• Former Colombian nationals who renounced their citizenship;
• Temporary residents who have remained in Colombia under a TP visa (subcategories 3 through 9) for at least five years;
• Partners or spouses of Colombian nationals who have resided in Colombia for at least three years under the TP-10 visa; and
• Individuals who have registered an investment with the Bank of the Republic of at least 650 times the Colombian monthly minimum wage.

Visas in this category will not be tied to a local employer and will be valid for five years.
Resident RE visa holders who remain outside of Colombia for two continuous years will lose their residence.

As the June 24 implementation date approaches, further changes may be announced. Fragomen is monitoring the implementation of the new law and will provide updates as details are announced.

Source: Fragomen

The Chinese central government has issued proposed regulations to implement the new Exit and Entry Administrative Law that will take effect July 1, 2013. The proposed rules would introduce a new visa category for business visitors, create new subcategories for the principal work visa, define situations that constitute illegal work and illegal stay for enforcement purposes, and make various eligibility and process changes. Employers and other interested parties have until June 3 to provide feedback on the proposals.

Changes to Visa Classifications 

A new M visa category would be created for foreign nationals visiting China for business or trade purposes. The F visa currently used for business visitors would be reserved for visitors engaged in science, education, culture, health, sports and other non-commercial activities.

The Z work visa would be divided into two subcategories: the Z1 category for foreign nationals who will work in China for more than 90 days, and the Z2 category for those who intend to work in China for up to 90 days. The Z1 visa would need to be converted to a residence permit within 30 days of the visa holder’s arrival.

To implement the Talent Introduction visa introduced in the new law, the rules would create a new R visa with two subcategories: the R1 category, which would enable long-term residence in China, and the R2 category, which would be suitable for short-term stays. The draft regulations do not specify eligibility criteria or implementation details for the new R visa, which is intended to attract high-caliber talented foreign nationals from overseas to work and live in China.

Clearer Definitions of Illegal Work and Illegal Stays

The draft regulations provide more clarity on the acts that would constitute staying or working illegally under the new law. Illegal stays would include, but not be limited to, visa or residence permit overstays, and traveling or staying outside the permitted area of stay. Illegal work would include, but not be limited to, working outside of the jurisdiction of the work authorization, or at an entity other than that listed in the work authorization.

Changes to Eligibility and Process Requirements

The proposed regulations would allow holders of certain short-term stay visas to extend a visit in China under the visa used to enter the country. Under current rules, visa extensions are not permitted. Instead, a foreign national who wants to extend a stay must have the visa cancelled and request a new one.

Medical reports would be required for foreign nationals who are at least 16 years old and applying for the first time for residence permits of one year or longer. Currently, this requirement applies only to first-time applicants who are aged 18 or older, regardless of the length of the residence permit sought.

The official processing time for in-country residence permit renewals would increase to 15 calendar days, from the current five to seven working days.

Student permit holders would be allowed, with the permission of their sponsoring school, to work part-time to support their study in China or to take up an internship while studying. The current rules do not allow for these arrangements.

Public Consultation

Companies and other stakeholders are invited to review and provide comments to the draft regulations by June 3. The official draft regulations are in Chinese only and the government has not released an official English translation. Please check with your Fragomen professional in China if you wish to obtain a copy of the official draft regulations or an English translation.

Employers can opt to provide comments to Fragomen China, which will submit consolidated feedback to the authorities before the due date.

Fragomen will continue to monitor developments on the new China immigration law and issue an update once the regulations are finalized.

Source: Fragomen