Local taxes/Company and accounting registration

Employing staff overseas may result in the University creating a “permanent establishment” in another country. As a result the University could potentially be subject to local tax filings and payments, in addition to local accounting filings.  For example it may be the case that by employing a single member of staff, who performs their duties for the University in another country, the University would be required to file audited annual company accounts, pay corporation taxes and social security contributions in order for the employee to legally work within the country.

Failing to do this could expose the University to the risk of prosecution and financial penalties.  The administration cost of this set up and requirement to procure country specific advice will need to be taken into account when this applies.   This would result in a cost to the College employing the member of staff.

ACTIONS
University Tax Manager to advise on local taxes/accounting registration based on information on Questionnaire.  This will usually incur a cost to the College.
College is responsible for any costs associated with local taxes etc.