What is an expat employee?

An expat, or expatriate employee, is an individual who works in a foreign country while retaining their citizenship from their home country. This employment is typically temporary or for a specified period.

What challenges can arise when paying expat employees?

Paying expat employees can be challenging due to various factors, including tax implications in both their home country and the country of work, currency exchange rates, and compliance with local labour laws.

Are there tax provisions that benefit expat employees?

Yes, some countries offer tax benefits to expat employees. For example, the United States has a foreign*-*earned income exclusion, allowing expats to exclude a portion of their foreign-earned income from U.S. federal income tax. Other countries like Canada and Australia have similar provisions. Additionally, tax treaties between countries can help expats avoid double taxation.

What is the difference between an expat and an immigrant?

An expat is an individual who temporarily resides and works in a foreign country while maintaining citizenship in their home country. In contrast, an immigrant is a person who permanently moves to a new country and typically seeks citizenship or permanent residency.

How can companies with a global workforce simplify paying expat employees?

Companies managing expat payments for a global workforce can benefit from using a payment execution platform. Such platforms provide regulatory knowledge for relevant countries, automate payments, and offer clear data visibility to reduce the risk of errors and ensure compliance with tax laws and treaties.