Services

Global Employer Services

With the resurrection of the Indian economy, multi-national companies have started investing extensively in India and Indian multinationals. This growth has made employment issues more complex. One of the most serious challenges faced by companies today is compliance, with multifaceted tax laws and labor regulations. Deloitte offers well-rounded plans and program development strategies that can help transform global employment programs in a value proposition efficient manner. We have developed an array of tools and software to facilitate faster and robust solutions to our clients.

Besides employer and employee compliance services, our other key focus areas include Outbound mobility consultations – design documentations and review; Global equity consultations; Social Security compliance and advisory; Immigration services; High Net Worth Individuals

Social Security

There has been a significant rise in cross-border employments in the recent times. While this has several advantages and benefits, there is also an additional cost due to regulatory policies across the globe such as tax and social security. India did not have any specific social security regime for globally mobile employees, unlike many other countries. However, in November 2008 the Indian Government amended the social security regulations to bring foreign nationals working for a covered establishment in India (International Workers / IWs) within its ambit. The regulations also laid down specific provisions for deputees to overseas locations in certain circumstances. Further, the norms for withdrawal as applicable to IW have been tightened considerably. The social security Regulatory authorities have also issued periodic updates in the form of frequently asked questions to clarify open issues.

Social Security Agreements

Social Security Agreements (SSAs) provide a way out of the dual social security liabilities for mobile employees. Benefits of SSAs are Detachment, Export of benefits and Totalization. India has entered into SSAs with eleven countries out of which eight SSAs are in force as of date. The status of SSAs is summarized below:

Effective

Belgium, Germany (limited), Switzerland, Denmark, Luxembourg, France, Korea, Netherlands, Hungary, Sweden, Finland, Czech Republic

Concluded and signed 

Japan, Canada, Portugal, Norway, Austria, Quebec, Germany (Comprehensive)

How can Deloitte assist you?

Deloitte can provide integrated services that help you navigate the complex social security laws and related compliance obligations of your compensation programs in a cost efficient manner.

 

Key services offered by Deloitte:

Outbound employees

  • Advice on the appropriate outbound deputation model to leverage the SSA advantage
  • Analyze the eligibility of mobile employee population for SSA benefits.
  • Advice to adopt the correct compensation structure to optimize social security cost.
  • Assist employee/employer in applying for the Certificate of Coverage (CoC).

Inbound employees

  • Review of compensation structure for various types of assignments
  • Suggest an optimal compensation structure from tax and social security perspective
  • Liaise with the overseas offices to obtain the Detachment Certificate/COC
  • Assist in re-classification of bank accounts on repatriation.

Stock Awards

Employee Stock Option Plan: An insight
Over the last decade, Employee Stock Options (or stock awards) have become an extremely important component of the compensation package. Many companies have effectively used this tool to attract, retain and motivate their employees.

Mobile employees & Equity Awards
Compliances for mobile employees pose a greater challenge to the tax and HR team. The initial plan itself may need to meet the local regulations to qualify for beneficial tax treatment in the locations where employees are based. The employee may be granted an equity award in one country and vesting, exercise and sale may take place in different jurisdictions attracting cross border tax and compliance regulations. Avoidance of double taxation is an additional challenge.

How can Deloitte assist you?

Structuring

  • Advisory
  • Documentation
  • Execution

Advisory

  • Regulatory
  • Mobile employees
  • Health checks

Compliance Tools

 

Key Factors to be considered for a stock award:

  • Tax and social security implications
  • Impact on Financials
  • Shareholding dilution and share price
  • Regulatory Compliances
  • Types of plans
  • Impact in overseas jurisdictions
  • Employees to be covered

India Immigration

Be it for employment, business, recreation, education or medical treatment, the last two decades hves seen a spurt in the number of foreign nationals coming to India. Economic growth, expansion of businesses, access to worldclass education and health care facilities at competitive prices are some key factors that have contributed to this scenario. The Ministry of Home Affairs (Government of India) has laid down detailed visa guidelines for foreign nationals coming to India.

Types of Visa

  • Employment Visa (E-visa)
  • Business Visa (B-Visa)
  • Dependent Visa
  • Student Visa
  • Tourist Visa
  • Project Visa

How can Deloitte assist you?

At Deloitte, we have a dedicated team experienced in handling immigration issues. Our team professes specialized knowledge both on the advisory and compliance fronts and offer the following services:

  • FRRO registration for the foreign national and accompanying dependents on arrival
  • Extension/renewal of FRRO registration
  • Extension of Visa
  • General advisory in connection with FRRO/immigration
  • Drafting & processing application for PIO/OCI card

Some of the key aspects of the guideline are:

  • There is no concept of work permit in India.
  • Foreign nationals coming to India need to have a valid visa depending on the purpose of visit and nature of work they propose to carry out in India.
  • Another key aspect is validity of visa, based on purpose of visit to India. For example an employment visa is issued initially for 12 months.
  • Foreign nationals coming to work in India need to possess a valid E-visa while dependents can come on entry/dependent visa
  • PIO (Person of Indian Origin) or OCI (Overseas Citizen of India) cardholders do not require a visa to enter India.
  • Foreign nationals should register themselves with the Foreigners’ Regional Registration Officer (FRRO)/local police authorities.
  • Timing of registration is dependent on the period of stay and nature of visa.

Outbound Mobility

As companies grow and become more global in scope, so do the cross border employment issues of the mobile workforce. Among the most serious challenge that Indian businesses face today is compliance with multifaceted tax laws, social security and exchange control regulations under different jurisdictions across the globe.

Immigration
Immigration and work permit regulations differ from country to country and can cause significant delays, costs and litigation if not handled properly. Our immigration consultants can help you secure a right visa, obtain registration and apply extension which is considered to be a complex and time consuming process. Our team of experts can help you maintain a compliant global business immigration program.

Use of GES technology tools
In today’s tech savvy world, we at Deloitte are one up on the use of latest technology. We have developed an array of tools and software to facilitate faster, reliable and robust solutions to our clients. We could use our technology tools in administration of the assignment.

We can also provide assistance in:

  • Determining the eligibility for claiming benefit under Social Security Agreements (SSA)
  • Facilitating the process of detachment and ensuring
  • On-going social security compliances – determining monthly contribution by employer and employee in India



How can Deloitte assist you?

We offer a broad range of services to help companies streamline and manage their international assignment programs by providing cost-effective and value-added solutions. Some of our key service offerings include:

  • Mobility consultation– Design, documentation / review
  • Setting up a Global Compliance Model
  • Global Equity Consulting
  • Social security compliance and advisory

Compensation structuring

What you pay your employees mirrors your value for their work. You may want to keep the compensation package simple, within the legal framework and aligned with company’s objectives, while your employees, depending on their designation and age demographies, may look at recognition of efforts, reward for loyalty maximize take home, retirement planning etc. An appropriate compensation structure is one that takes into account these myriad factors to motivate and retain the employee on the one hand and augurs well for the management on the other.

Globally, compensation systems are distinct according to the local conditions and culture but aligned with organization’s philosophy. The factors influencing compensation structure could be bucketed under external and internal influencers.

Factors influencing compensation structures:

External

Government norms : Labour laws & regulations | Tax system and rates in force

Market: Industry trend/competitors move | Availability of manpower for a particular job |Cost of living in the economy

Internal

Employer: Business strategy | Management philosophy | Ability to pay | Growth phase of the company

Employee: Take home pay | Reward based pay for employees in middle and top management | Mobile employees would expect compensation for increased cost of living, hardship, mobility premiums and exchange rate fluctuations | Psychological and sociological factors

Our services at executive level

Wealth management and maximization | Personal income taxation and investment planning | Favourably applying the provisions of India’s tax treaties to minimize cash outflow | Designing flexible compensation plan with the right proportion of cash and long-term incentives |Structuring customized compensation for mobile population – Projection of tax and social security costs in India and host location to arrive at the optimal take home pay | Tax litigations – both front end and documentation preparation.

How can Deloitte assist you?

We can

  • Provide the management with a clear perspective on the current regulations
  • Evaluate alternate compensation structuring options to maximize tax efficiency
  • Develop policy documentation for various benefits
  • Draft and facilitate employee communications
  • Assisting in management and compliance

 

Global Mobility Transformation Services

Globalisation is prompting companies to consider international deployments more than ever before.  Unfortunately, many are having to rely on workforce mobility policies and structures that were designed for different times. The result is an increase in elaborate and expensive expatriate packages with exceptions becoming the norm. In addition, companies have to deal with soaring programme costs, with escalating regulatory and compliance risks. As a result, it becomes all but impossible to execute a business strategy that requires putting the right talent in the right position at the right time – at the right cost.

We assist companies transform their global workforce mobility programmes, providing insight and experience across the full spectrum of talent management, total rewards, technology and tax.

Some of these programmes include: Conducting a Mobility Workshops; Designing and implementing a new policy suite and Reviewing Assignment Policy

The benefits

Organisations that transform their mobility programmes have the potential to see significant efficiency gains from clarified service delivery models, business aligned policies, streamlined processes and the greater automation gained from mobility technology which can yield efficiency and cost improvement. The real benefit of global mobility transformation will actually be the improved ability to execute the organisation’s mobility strategies and, in turn, address business needs for growth, globalisation, and global talent management.

How can Deloitte assist you?

Our GMT services include:

Global Mobility Strategy | Process Review & Design | Data Analytics | Benchmarking | Mobility Workshop | Governance and Organisation Structure | Technology | Service Delivery Model | Assignee Surveys | Service Delivery Model | GES Feasibility Analysis | Vendors | Job Aids & Templates | Wrokplace Planning | Diversity and Inclusion | Global Mobility Fundamentals training