Global Mobility Survey Report

Transcription

1 Global Mobility Survey 2014 Report

2 Contents Introduction 4 Executive Summary 4 Part 1: Sector Analysis 7 Production, Manufacturing & Materials 8 Banking, Financial Services & Insurance 11 IT 13 Science, Pharmaceutical & Food 15 Part 2: General Taxation Commentary 17 Part 3: SARP Background 19 Part 4: Visa & Residency Compliance 22 Conclusion 24 Appendix 1: Survey Questions 27 Appendix 2: Visas 38 3

3 Introduction In March 2014, the American Chamber of Commerce surveyed its members about their Global Mobility activity in 2013 and plans for The survey, which was run in conjunction with Taxback.com, sought to examine the issues and difficulties facing organisations when their employees cross borders. A sample of 50 respondents from companies headquartered primarily in Ireland and the US across four main industry sectors 1 completed the survey. Executive Summary The results of the survey revealed that a growing number of companies are choosing to fill knowledge and networking gaps by sending employees abroad. Respondents indicated that despite vast improvements in overseas communication tools, having key people on the ground is by and large the most effective way of sharing critical business knowledge. Companies revealed that having a globally mobile workforce strengthened and facilitated business growth in overseas markets. Key Findings Over 70% of the companies surveyed had employees on assignments overseas - this practice appears to be well spread across the key business sectors. Over a third of respondents expect the number of assignees abroad to increase in the next 12 months. Key destinations are: USA (60%); Euro Area (32%); UK (20%); BRICS (Brazil, Russia, India, China) 16%; Middle East (10%). 4 1 The four main sectors represented amongst the respondents were: Production Manufacturing and Materials; Banking, Financial Services & Insurance; IT and Science Pharmaceutical and Food

4 26% of respondents don t currently track employee movements. Monthly travel to the UK & Europe remains high 74% say that at least one employee makes 2/3 trips per month. Just over 50% of overseas companies do not have any foreign employees seconded into Ireland on mobility programmes with 16% of respondents saying they will be increasing this in the next 12 months. Accessing visas from the Department of Foreign Affairs seems to be a major issue for those companies that participated in the survey. Concerns over taxation levels and cost of living were cited as the other main deterrents in sending employees to Ireland. 92% of all respondents stated that they have not attempted to bring in assignees under SARP. 62% of respondents cited taxation levels as an issue which would put off potential assignees from coming to Ireland. It appears that women are more reluctant to travel with 86% of respondents indicating that men are more likely to volunteer to travel. Family issues were unsurprisingly the key area of difficulty for those being asked to travel, hence the reluctance of those with responsibilities to want to go. Those in their 30s are most likely to want to travel (56%) - while those in their 20s (40%) follow few people over 40 appear to want to travel for work (4%) Compensation and security of returning employment are also major issues for employers and companies. Employees need to feel that going on assignment is both beneficial for their employer and them. 36% of respondents do not have a specific assignment policy document in place and 30% of all respondents were unfamiliar with the tax laws of the countries in which the assignees were based. 10% of the firms surveyed have incurred fines for non-compliance with foreign tax obligations. 5

5 Figure 1: Key Findings Main destinations for international assignments: 60 US 20 UK 32 Euro Area 10 Middle East US UK 20% EA 32% ME 10% BRICS 16% 60% Respondents could select multiple destinations in this question. BRICS 16 Sectors of Survey Respondents: Production, Manufacturing & Materials 26% IT 16% Science, Pharma & Food 10% Banking, Financial Services & Insurance 20% HR & Recruitment 4% Tourism, Travel & Airlines 2% Legal 6% Publishing, Media & Creative Arts 2% Construction, Architecture & Property 2% Customer Service, Call Centres & Languages 2% Engineering & Utilities 6% Accountancy & Finance 2% Other 2% 28% 1/3 expect the number of assignees abroad to rise 10% 36% incurred fines for non compliance don t have an assignment policy document 6

6 Sector Analysis 7

7 Part 1. Sector Analysis The respondents came from a range of different sectors (see Figure 2). For the purpose of this report, we ve chosen to discuss the four biggest sectors which are listed below. Figure 2: Main Sectors Sector Percentage of Respondents Production, Manufacturing & Materials 26% Banking, Financial Services & Insurance 20% IT 16% Science, Pharmaceutical & Food 10% Other 28% 26% 20% 16% 10% 28% Production, Manufacturing & Materials The Production, Manufacturing & Materials (PMM) sector accounted for the largest group of participants (26%). All respondents had US headquarters with just one company selecting Switzerland for the location. This shows strong FDI into Ireland from this sector. 30% of the respondents in this sector had HR roles, 15% were from Finance and 53% were a mix of roles including General Manager and Operations Director. Outgoing Assignees for the Production, Manufacturing & Materials Sector The PMM sector had a very small number of outgoing assignees with over 15% having none and 53% having only 1-5 staff members abroad. When asked about growth in this sector, an overwhelming majority said they expected the numbers of outbound assignees to stay the same with 15% predicting a decrease and only the Swiss company said that it expected an increase. As expected for so many companies that are headquartered in the US, the US was the Number 1 destination with over 61% choosing this. Germany was the second most popular destination (15%). One possible reason for this could be that some of these firms have sites or manufacturing plants in Germany. Training & Development and Filling Skill Gaps were the two predominant reasons for sending staff on outbound assignments. 8

8 Assignments of between 12 and 24 months were the most common in this sector. Over 61% of respondents in this sector indicated that they had short-term commuters people who would do short business trips during the month. Interestingly, the majority of respondents said that they did not include the commuters when considering staff on assignment with global mobility needs. Training & Development and Filling Skill Gaps were the two predominant reasons for sending staff on outbound assignments. Incoming Assignees for the Production, Manufacturing & Materials Sector A huge 84% of respondents did not have any assignees in Ireland from foreign offices at this point in time with 84% expecting this number to stay the same. Of the 23% of PMM companies that gave reasons for incoming assignees, Training & Development was the most commonly cited factor was the largest group currently inbound from this sector. None of the PMM companies have attempted to bring in assignees under the Special Assignee Relief Programme (SARP) perhaps suggesting a lack of awareness. The two most common issues that put off potential assignees from coming to Ireland were taxation levels and the cost of living. When it came to the difficulties that the PMM sector experienced when sending employees on assignment, compensation was the most common issue with family and then tax being cited. One respondent in this sector selected Lack of internal knowledge. As this particular company doesn t track employees movements, GM software or indeed a GM specialist taking over the role could potentially rectify this issue. The two most common issues that put off potential assignees from coming to Ireland were taxation levels and the cost of living. There was a high level of assistance provided for incoming assignees within the PPM sector with immigration assistance for spouse / family coming first and return airfare for family members once a year and temporary housing also well represented. It might be expected that temporary housing would be something that all companies would offer to incoming assignees but whilst the majority did, over 30% did not. The majority of the companies who indicated that they use a GM software tool said that they had appointed a GM specialist to monitor assignees. In the cases where this task was the 9

9 responsibility of HR, GM software was seldom used (only 1 HR professional said they used GM software). Single men were, predictably enough, more likely to travel but the age range was fairly broad. Tax Compliance When it came to tax compliance, just over 69% of PMM respondents confirmed that they had an assignment policy document for assignees with everyone except one company choosing Tax Equalisation as the policy. 77% of companies claimed to be aware of tax laws in the countries in which assignees were based. This is probably owing to the fact that the US was the most common destination for outbound assignees. The majority of the companies used an external provider to look after GM requirements which probably explains why no fines have been suffered. Just over 92% of the companies within this sector profess to be aware of the visa / residency laws in the countries in which assignees were based. This would be expected since becoming familiar with visa regulations is normally the first step in setting up either an inbound or outbound assignment. Figure 3: PMM Sector Snapshot 26% of respondents 26% were from this policy document 61% 69% sector 69% have assignment 31% did not 61% short-term commuters 31% Production, Manufacturing & Materials Sector Skill gaps Training & Development 10

10 Banking, Financial Services & Insurance Sector The banking, financial services & insurance sector is the second biggest segment (20%) in the survey after Production, Manufacturing & Materials. A 60% majority of the companies have Irish headquarters with 30% being in the US and the remaining 10% in the UK. Outgoing Assignees for the Banking, Financial Services & Insurance Sector 50% of the Irish companies are increasing their presence abroad, 33% are maintaining it and only 17% are decreasing. This shows Ireland s recent expansion in exports is continuing with confidence growing in investing in talent. 33% of the US companies expect to increase while 66% expect to maintain current levels of outbound assignees. All US companies cited Training & Development as a key reason for sending assignees abroad. This suggests that Irish employees are travelling to US headquarters to upskill and drive growth in the sector. Company expansion is another reason cited by several of the participants. Incoming Assignees for the Banking, Financial Services & Insurance Sector Across all the companies, there seems to be less positivity when it comes to predictions for growth in the number of incoming assignees. 80% of companies expect to maintain current levels with 20% expecting to decrease in This would suggest that parts of the sector are still to fully recover from local economic difficulties. Inbound assignees from this sector are put off by taxation levels, visa laws and the cost of living. The main difficulty faced when sending employees on assignment is compensation, with 60% citing this as a reason. With new EU laws around bonuses for part of this sector, this may explain the negative outlook towards incoming assignees. Assistance for incoming assignees generally seemed generous across the sector with a number of benefits offered including a relocation allowance and return airfare for family members once a year. 11

11 Figure 4: Banking, Financial Services & Insurance Sector Snapshot 10% UK 30% USA 60% Irish Banking, Financial Services & Insurance Sector Training Development 70% 90% key reason for sending assignees abroad 70% of this sector using GM tracking tools 90% of the companies have a dedicated Global Mobility specialist Tax Compliance The banking, financial services & insurance sector is very proactive at tracking employee movement with 70% using specific GM tracking tools. 90% of the companies surveyed have a tax policy in place with 80% of them using tax equalisation. This shows that the sector is very in tune with assignee requirements. 50% of the companies have a dedicated Global Mobility specialist in place to manage it. 12

12 IT Sector 16% of survey participants came from the IT sector, and all were US firms, demonstrating a strong current of FDI into Ireland. 62% of the participants were finance professionals. IT Sector Outgoing Assignees The IT sector had a low volume of outgoing assignees with only one firm indicating that it had more than 10 people on assignment and the remainder of respondents fairly evenly split between having 1 and 5 people abroad, and none at all. In contrast to the Production, Manufacturing & Materials (PMM) sector, 50% see the number of outbound assignees rising over the next year. The most popular destination for outbound assignees is the US. The main reason for people going abroad is company expansion. This is also a positive finding and may suggest that IT companies are developing new regional markets in their home countries. The length of assignments range from less than 6 months to 2 years + with a pretty even split amongst the time spans. The IT sector is very positive about future growth prospects. Incoming Assignees for IT Sector Only 50% of the IT companies surveyed have incoming assignees, with taxation levels again being the most common reason cited. Compensation is the most frequently mentioned difficulty encountered when sending employees on assignment suggesting that this is a big issue within the IT sector. Family also scored highly in this question with 87% indicating this was an issue. When it came to the assistance currently offered to assignees, a broad number of benefits are offered including immigration support for spouse and family and the guarantee of the current role being given. Only 25% of the firms in the IT sector have a Global Mobility specialist with the other 75% using HR to perform this function. Only one company uses GM software to track employees movements. 13

13 Given the low number of both inbound and outbound assignees, this suggests that the firms may be smaller with fewer niche roles. Figure 5: IT Sector Snapshot 50% 25% 50% have incoming assignees 25% incurred fines Company expansion IT Sector Growth Months Most popular destination is the US Very positive about future growth prospects Tax Compliance The majority of the IT firms surveyed have no assignment policy document which is surprising. It suggests that their tax policies are slightly less developed than at the other companies that participated in the survey. The respondents may be from younger companies within the IT sector. The majority of the IT companies surveyed outsource their Global Mobility requirements to an external provider. However, since over 62% of these companies say that they feel the company 14

14 would benefit from an external tax briefing on assignments, they should perhaps be asking for more from the external providers. There appears to be a degree of discomfort around the management of assignments despite outside (and probably expensive) expertise. Given the fact that 25% of the companies surveyed admit to incurring fines arising from foreign tax obligations, they could definitely benefit from making changes. Science, Pharmaceutical & Food Sector The Science, Pharmaceutical & Food (SPF) companies represented a small segment within the participants so the trends extrapolated may not be universal. 80% of the respondents from this sector were from the US with the remaining 20% from Ireland. Outgoing Assignees within Science, Pharmaceutical & Food Sectors One company within this sector indicated that it has currently 50+ Irish assignees abroad. 80% of the firms surveyed have sent assignees away in the last 12 months. When questioned about whether the numbers of outbound assignees was expected to increase in 2014, there were an equal number of responses for increasing and decreasing suggesting a neutral outlook from this sector. Training & Development was the most commonly cited reason for sending people on outbound assignments within this sector. All the companies within the Science, Pharma and Food (SPF) sector have short-term business travellers or commuters although none of them monitor these as part of the company s Global Mobility function. The Netherlands and the UK are the two most popular destinations. Training & Development was the most commonly cited reason for sending people on outbound assignments. Incoming Assignees within Science, Pharmaceutical & Food Sectors Only one firm expects the number of inbound assignees to rise in Inbound assignees come from a variety of countries including India, the US and Germany. Issues putting off potential assignees from coming to Ireland were the cost of living, taxation levels and visa laws (equal mentions for each). 15

15 Tax Compliance 60% of the firms in the SPF sector use a Global Mobility specialist to monitor their assignees and all firms in this sector have a structured assignment policy. Given the fact that the US pharmaceutical industry is a mature industry and has been investing in Ireland in since the late 1950s, it makes sense that these companies have a more fully developed global policy than the newer sectors such as IT. Family is cited universally as the biggest challenge faced by all companies in this sector with all of them offering a return airfare for family members once a year and, interestingly, immigration assistance for family relocating. 80% of the SPF participants are comfortable with their knowledge of Irish tax laws and none of the entities in this area have been fined for non-compliance. The companies that have an in-house Global Mobility specialist all centrally manage the assignment process and use external providers to look after the tax requirements. Figure 6: SPF Sector Snapshot 80% No Fines 80% of respondents have sent assignees away in the last year Family is the biggest challenge No fines 16

16 General Taxation Commentary 17

17 Part 2. General Taxation Commentary Despite a growing number of companies sending and receiving assignees to and from Ireland, a surprising number of these firms do not have company-wide policies in place for dealing with assignment-related income and benefits. 36% of respondents do not have a specific assignment policy document in place. Of the 64% that do, 90% of those have opted for Tax Equalisation, which ensures the individual does not pay additional tax due to their assignment but also precludes the individual from benefitting if the assignment is to a lower tax region. 30% of all respondents were unfamiliar with tax laws of the countries in which the assignees were based. There was a high correlation between the respondents who had no strict policy assignment documentation in place and those who were unaware of the specific tax legislation in place. Similarly, the firms who reported that either they used no tracking method or that tracking was self-managed by the employee were far more likely to be unaware of their international obligations. 30% of all respondents were unfamiliar with the tax laws of the countries in which the assignees were based. While 50% of companies used an external provider to meet their Global Mobility (GM) requirements, 44% of these companies felt their company would benefit from an external tax briefing around assignees, suggesting that the external providers could get more involved, especially when HR are charged with monitoring international assignments. The fact that a full 10% of firms have already reported that they have been subject to fines for non compliance suggests that there is still significant potential for improvement in firms taxation and assignment policies. In circumstances where the company manages their assignee issues from the home location there is a higher instance of fines arising (i.e. a lack of local knowledge in the host location could potentially be the issue). It is possible that host location compliance was not prioritised and communication issues could potentially have been a factor here. Attaching a higher weighting to tax compliance may help ensure unnecessary fines are avoided. While up to a third of firms report using specialist GM software to assist in assignment management, a similar number leave tracking and compliance up to the individual. Furthermore, a large majority of firms state that they do not consider Short Term Business Travellers (STBTs) to be a part of the GM landscape. 18 We think that firms not including short term business travellers within their global mobility programme is potentially a risky strategy and suggests that very few firms are fully in control of their workforce and taxation obligations. Aiming to get greater control over their mobile workforce is often what prompts companies to approach us for a global mobility solution. Barry Flanagan Taxback.com

18 SARP (Special Assignee Relief Programme) 19

19 Part 3. SARP (Special Assignee Relief Programme) In the survey, 64% of respondents stated that they had defined policy documents in respect of their mobile workforce and of these respondents, 90% stated that they operated a policy of tax equalisation. This means that for a significant portion of employers, tax savings arising from expatriate regimes are ultimately employer savings and are therefore taken into account in the overall assessment of costs in operating in a location. The benefit of these regimes from a competitiveness perspective cannot, therefore, be underestimated. In Ireland there is a potential tax saving under SARP. The aim of SARP was to provide a competitive and broad regime which would incentivise talented employees to locate in Ireland. It was also hoped that this relief would help create jobs and therefore generate additional tax revenue. Similar schemes exist in other countries with which we compete for investment and such tax savings regimes can often help persuade a company in the decision with regard to where to invest. The SARP regime operates by allowing a qualifying employee to claim tax relief by reducing their taxable income by 30% (the deduction applies to income between 75,000 and 300,000). The relief is available to individuals coming to Ireland during 2012, 2013 or 2014 and can be claimed for up to five years. Survey Responses to SARP Programme 92% of all respondents stated that they have not attempted to bring in assignees under SARP. If the regime was assisting in incentivising both employers and employees we would expect to see a very different response. The question which must be addressed, therefore, is: Why are employers not bringing assignees in under SARP? This is of particular interest when we also consider the fact that 62% of respondents cited taxation levels as an issue which would put off a potential assignee from coming to Ireland. Ireland s penal tax rates, combined with the restrictive nature of the expatriate regime, could be having a significant impact on inward investment. 62% of respondents said that the taxation levels would put potential assignees off from coming to Ireland. It is also worth considering here the way in which assignee requirements are managed and to examine if this may ultimately have an impact on whether or not tax savings are being 20

20 optimised in both home and host locations. 50% of survey respondents stated that assignee requirements are managed in the home country. Furthermore, 83% of those stating that they had encountered difficulties in attracting assignees to Ireland under the SARP programme had also stated that the assignee requirements were managed in the home country. This may lead to the suggestion that there is a greater need for localised knowledge of the host location at the outset in assignment structuring in order to ensure that the optimum tax position be achieved in both jurisdictions. The resounding message from the survey results is that taxation is a significant concern for HR and Finance alike (with 100% of Finance personnel and 64% or HR personnel confirming this), and that companies require more support in order to attempt to reduce their costs in this area. In order for Ireland to improve its competiveness as an inward investment jurisdiction we also need to consider the shortcomings of our expatriate regime as it currently exists. Christine Keily Taxback.com 21

21 Visa & Residency Compliance 22

22 Part 4. Visa & Residency Compliance Survey Reponses to Visa Issues All sectors agree that having key people on the ground is essential to business growth in overseas markets. Over 70% of Irish companies surveyed currently have skilled employees overseas, and 56% of these companies therefore need to obtain work visas so their employees can work in the countries which were highlighted in the survey. For companies relocating staff to Ireland, over a third cited Irish visa laws as a deterrent to relocating employees in Ireland; however at the same time, only 38% of these companies surveyed use an external provider; choosing instead to look after the visa process in-house. This would suggest that there is potential to relocate much-needed skilled professionals through the use of an external provider which deals with migration queries on a day-to-day basis rather than adding yet another task to the busy HR function. An Irish visa and an Irish work permit are separate documents and are issued from two separate Irish government departments, the Department of Justice and the Department of Jobs, Enterprise and Innovation respectively. A work permit gives you permission to work in Ireland and a visa gives you right of entry. 2 A third of respondents cited visa laws as an issue when bringing assignees to Ireland Some nationalities are eligible for a visa on entry for example the USA, Australia, Canada but all others must have a visa processed pre-arrival. It s important to note that an entry visa does not give you the right to work. (The Department recently introduced a pilot programme issuing visas with work rights for a limited duration; they may offer similar programmes in the future, but as a rule there is no permission to work on an entry visa.) As mentioned above, a third of respondents stated that visa laws act as a deterrent for incoming assignees. The Irish visa requirements are specific and underwent a number of positive changes over the last year, and will be subject to further change this year. The more recent changes brought a much-needed reduction in permit processing times and an ease in the requirement to transfer staff from overseas to Irish branches. The predominant reason for companies sending people to Ireland is due to training and development which accounts for 46% of the companies surveyed. The inter-company visa is an option for these employees. 2 For details of the different visas that may apply for relocating employees, please see Appendix 2. 23

23 The survey did note a bias in the number of male applicants for the Irish Work permits which is probably a result of the work permit grant conditions, one of which being that the applicant is not allowed family reunification for the initial 12 months stay in Ireland. The green card will allow immediate family reunification; however there are greater skill and salary requirements for this permit. It is important to be compliant, as any non-compliance with immigration may result in deportation. Leaving an employee to manage his or her own visa affairs can be time consuming and stressful. If the application is unsuccessful, it would also leave a company open to audit by the relevant department of immigration and could hinder further applications. This is why a lot of companies choose to outsource this function. At VisaFirst, we have noted that due to lack of knowledge of the process and alternative options, there are often significant delays in preparing and lodging visa application which can affect overall costs and the time-line of projects. This year 16% of respondents intend to relocate high skilled employees to Ireland. Edwina Shanahan VisaFirst Conclusion There are a variety of ways in which companies can execute an efficient, cost effective and seamless global mobility process within their organisation however there are numerous considerations in the mix from travel and subsistence arrangements, to the expatriate regimes and tax treatment of employees in host countries. There are significant benefits from having employees on the ground in other countries but it is hugely important for any company, whether Irish or overseas, to take expert advice which will allow them to minimise the costs arising as a result of their globally mobile workforce. While the survey and subsequent report addressed a number of unknown factors surrounding global mobility, it also threw up a number of questions that need to be addressed: Why are employers not bringing more assignees in under SARP? What have participating companies learned from sending employees overseas - Skill Sharing and Personal Development seem to be key benefits for the organisation but is this really creating a competitive advantage for these companies? Fewer people are coming into Ireland on global mobility assignments so does this suggest that Ireland is supplying higher skilled individuals? 24

24 Companies encounter significant hurdles with Irish immigration when it comes to processing and securing the relevant work visas how can this situation be improved? Family issues are cited as a key area of difficulty for those being asked to travel what can be done to help? Employers seem to feel that more established and older employees do not appear to want to leave the country for work how can companies incentivise these people? Compensation and tax are considered big challenges for companies when it comes to a globally mobile workforce how can companies deal with these difficult areas? While having a job to return to seems important to many, it would be interesting to know how many decide not to return It would also be beneficial to contrast long-term career benefits of those who have participated in global mobility assignments and those who have not Awareness of tax legislation and obligations could be improved in some companies this is costing both the employer & employee in the long run what can be done to support companies in this respect? How can companies that don t currently track employee movements be encouraged to do so? Our report reveals that global mobility can lead to companies having to navigate an unfamiliar landscape beset with challenges in taxation, immigration, payroll and compliance. The challenge of ensuring compliance with both domestic and international tax laws can lead to a rise in costs. Failure to comply with the tax rules in a jurisdiction will result in the application of penalties and interest on late payment of taxes. Penalties on their own can amount to as much as 100% of the actual tax charge and when combined with interest charges, employers can find themselves paying much more than they would have done if they had taken the correct tax advice at the outset. Organisations will therefore always need someone to facilitate the compliance and issues arising from global mobility programmes. As companies continued to expand their global footprint, the pressure to support this activity with more robust policies and processes will grow. Finding the right solution will depend on the ethos and needs of the individual organisation; there is no one size fits all magic formula. If you d like to discuss the findings or any of the topics in this report, please contact Ruairi Kelleher, Global Mobility Manager, Taxback.com on or rkelleher@taxback.com. 25

25 Appendices Global Mobility Survey March

26 Appendix 1: Survey Questions 1. Which most closely describes the industry you are in? Please Select Accountancy & Finance Banking, Financial services & Insurance Beauty, Hair Care, Leisure & Sport Construction, Architecture & Property Customer Service, Call Centres & Languages Education, Childcare & Training Engineering & Utilities Environmental, Health & Safety Executive Graduate Hotel & Catering HR & Recruitment IT Legal Marketing Medical Professionals & Healthcare Production, Manufacturing & Materials Public Sector Publishing, Media & Creative Arts Retailing, Wholesaling & Purchasing Sales Science, Pharmaceutical & Food Secretarial & Admin Security, Trades & General Services Social & Not for Profit Telecoms Tourism, Travel & Airlines Transport, Warehousing & Motor 27

27 2. Where is your company headquarters? 3. What role best describes your function? Please Select HR Finance Global Mobility Specialist Other - Please Specify 4. How many Irish assignees do you currently have abroad? Please Select None How many new assignees have you placed in the last 12 months? None Do you expect the overall numbers to increase in 2014? Yes Stay the same Decrease If yes by how many? None

28 (a) Please select the destinations for your assignees at present. Please click on as many countries as are applicable. (b) What are the main reasons for staff going on assignment? Please tick as many as are applicable. Company Expansion Training and Development Filling Skill Gaps Employee Retention Management Restructure (c) How long are the average assignments? Less than 6 months 6-12 months months Over 24 months 6. Do you have staff members who regularly commute / do business trips to the UK / European market, e.g. 2-3 business trips per month? Yes No (a) If yes, how many would you have? (b) Do you include these when you consider your staff on assignment with global mobility needs? Yes No (c) Which are the main countries they go to? Please select as many countries as are applicable. 29

29 7. How many assignees do you currently have in Ireland from foreign offices? Please Select None How many have entered in the last 12 months? Please Select None Do you expect the overall numbers to increase in 2014? Yes Stay the same Decrease By how many do you expect the overall numbers to increase? Please Select None (a) Please select the source countries of your assignees at present. Please select as many countries as are applicable. 30

30 (b) What are the main reasons for staff coming in on assignment? Company Expansion Training and Development Filling Skill Gaps Employee Retention Management Restructure (c) How long are the average assignments into Ireland? Please Select None Less than 6 months 6-12 months months Over 24 months 9. Have you attempted to bring in assignees under the Special Assignee Relief Programme (SARP)? Yes No (a) Have you ever experienced problems attracting applicants due to the programme s restrictions on relief where the individual performs non-incidental duties outside Ireland? Yes No (b) Have you ever encountered difficulties attracting applicants due to the cap on the relief available under SARP? Yes No 10. What issues are likely to put off potential assignees from coming to Ireland? Visa Laws Taxation levels Benefits Cost of Living Other, please specify: 31

31 11. Where are the assignees requirements managed? Please Select Home country Regionally Centrally 12. When sending employees on assignment, what difficulties do you face? Please tick all that apply. Compensation Family Immigration Location Lack of skills Lack of internal knowledge Tax Social Security Communication 13. What assistances do you currently offer assignees? Guarantee of current role back after assignment Return airfare for family members once a year Language training Immigration assistance for spouse/family Pay rise School tuition for children Car allowance Relocation allowance Temporary housing 14. What method do you use to track your employees movement? Global Mobility software tool Excel Self managed by assignees None 32

32 15. Who is accountable in your organisation for monitoring assignees? Please Select HR Finance Global Mobility Specialist Other Please specify 16. Which of the following are more likely to want to travel on assignments? (a) Marital status: Single Married (b) Sex: Men Women (c) Age group: Under Over 40 Tax Compliance 17. Do you currently have an assignment policy document for all assignees? Yes No What taxation policy do you use? Please Select Tax Equalisation Tax Protection Other 33

33 18. Are you currently aware of the tax laws of the countries in which your assignees are based? Yes No 19. How are your Global Mobility tax requirements currently managed? Please Select External provider In-house Other 20. Have you previously had to pay fines based around foreign tax obligations (relating to assignees)? Yes No 21. Would your company benefit from an external tax briefing around assignees? Yes No Visa & Residency Compliance 22. Are you currently aware of the visa / residency laws of the countries in which your assignees are based? Yes No 23. Have you encountered difficulties with attracting assignees to Ireland under the SARP programme related to the requirement for the assignee to be resident in Ireland? Yes No 24. How are your Global Mobility visa requirements currently managed? Please Select External provider In-house Other Thank you for taking the time to fill out the American Chamber of Commerce Ireland 2014 Global Mobility Survey. We will compile the findings and publish a report in March. It s our aim that the findings of this survey will help develop benchmark guidelines and achieve continual improvement. 34

34 Appendix 2: Visa Types The Irish Work Permit is used to bring skills into Ireland, of which Ireland has a labour or skills shortage of. Work Permits assume all occupations to be eligible unless otherwise specified, this generally requires applicant to earn a minimum remuneration of 30,000 per annum althought exceptions can apply. A labour market test is required. The Irish Green Card is designed to attract skilled people into the Irish labour market with the aim of encouraging them to take up permanent residence in Ireland. The permit requires the applicant to earn 60,000 or more. It is also available to certain occupations earning between 30,000-60,000 including ICT professionals, professional engineers and technologists, business and financial professionals. The Irish Intra-company Transfer requires the applicant to earn over 40,000 per annum. The applicant needs to demonstrate that they were working for the overseas company for 6 months prior to the transfer. The permit is strictly limited to senior management, key personnel or those undergoing a training programme. The Irish Contractor Permit may be issued to facilitate the transfer of non-eu employees to work on an Irish contract provided the employee in question has been working for a minimum period of 6 months with the overseas company prior to the transfer and that the duration of the transfer is at least 90 days. Applicants earning 40,000 or more can remain on non-irish payroll. The R&D Permit is open to Irish companies who have to recruit individuals for R&D posts. Family can travel on the permit. Applicants need a job offer from a company carrying out active R&D projects. The employer must be an accredited organisation for an active researcher. The salary requirement is lower for this permit class. 35

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