Alternative Remuneration in Cross Border Employment Cases

Cross border employment cases (e.g. where an employee resident in one state performs activities in another state on a temporary basis, where an employee changes its residence from one state to another while continuing his employment or where an employee is transferred from an employer resident in one state to a different employer in another state by secondment) have become more and more frequent in recent years. Equally, the importance of alternative forms of remuneration (stock-options, bonus payments, stock distributions, phantom stock, deferred remuneration etc.) has significantly increased. In the light of these developments, the project aims to analyse and discuss, in an international context, the taxation of selected forms of alternative remuneration and the impact that arises from their tax treatment on both, the employer`s and the employee`s side. Over the last few years, selected issues in national tax laws of many states have been discussed intensively amongst scholars and practitioners. However, it appears that there is a lack of comprehensive analysis of the tax treatment of alternative remunerations in international (cross border) cases, specifically dealing with the application of bilateral treaties.

Cross border employment cases (e.g. where an employee resident in one state performs activities in another state on a temporary basis, where an employee changes its residence from one state to another while continuing his employment or where an employee is transferred from an employer resident in one state to a different employer in another state by secondment) have become more and more frequent in recent years. Equally, the importance of alternative forms of remuneration (stock-options, bonus payments, stock distributions, phantom stock, deferred remuneration etc.) has significantly increased. In the light of these developments, the project aims to analyse and discuss, in an international context, the taxation of selected forms of alternative remuneration and the impact that arises from their tax treatment on both, the employer`s and the employee`s side. Over the last few years, selected issues in national tax laws of many states have been discussed intensively amongst scholars and practitioners. However, it appears that there is a lack of comprehensive analysis of the tax treatment of alternative remunerations in international (cross border) cases, specifically dealing with the application of bilateral treaties.