Latest Global Mobility Roundtable

Every two months BUFDG hold an online Global Mobility roundtable event for members only, to discuss any and every global mobility challenge, issue, thought and query. The latest event was held today, 27 March 2025 and we've produced some high level notes below for your information.

Our next roundtable will be held on Thursday, 22 May 2025 - book your place here.

Vialto are also running the BUFDG/Vialto in-person roundtables in April - follow this link to pick the appropriate location to register for.

Social Insurance in China:

• The integration of work permits with social insurance cards in China was discussed. This integration and changes to the systems in many cantons allows foreign employers to pay social insurance in China, simplifying processes but potentially increasing costs.
• There may be an opportunity for employees to extract social insurance contributions when leaving China, but the funds must be paid into a local Chinese bank account. This poses challenges for short-term assignees without a local account, although long-term assignees with one may benefit.
• Social Security contributions in China can be tax-deductible
• Experiences were shared regarding negotiations with Chinese tax and social security authorities, with an emphasis on the uncertainty of verbal agreements due to potential personnel changes.

Permanent Establishment in Nepal: The risks of creating a permanent establishment in Nepal were discussed, including the need for local entity setup, the requirement for Nepalese trustees, and the importance of understanding activity duration for assessing risks. 

Section 690 Process: The Section 690 process for employees working in the UK is being simplified to remove the delays in HMRC approval.

Certificates of Coverage: There is a significant backlog in processing certificates of coverage, with HMRC's team running 5-6 months behind. Increased resources are needed at HMRC to improve processing times. HMRC are due to run a Certificates of Coverage Time to Talk session and will point out the common errors arising in the sector to avoid unnecessary delay (on the sector’s side).

P85 Form Issues: Problems with the P85 form for employees working overseas were discussed, including rejections due to missing P-45 forms (inappropriate as employees aren’t leaving employment). There is a need for clearer guidance from HMRC.

Employer of Record: Challenges in ensuring compliance for remote employees working overseas were discussed, with potential benefits and significant challenges from using employer of record solutions. A request was made for attendees at the BUFDG Tax Conference to engage with Mauve Group to improve their understanding.

USS Pension Scheme: Efforts to get the USS pension scheme recognized as a qualifying scheme in countries like Norway and Australia were discussed, noting the challenges and the potential need for USS's approval.

Assignment Letters: The importance of issuing legally compliant assignment letters or contracts for employees working overseas, to ensure compliance with local labour laws, was highlighted.

Visa Reimbursements: Policies for visa reimbursements for employees working overseas depend on business cases and budget constraints for research grants.