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Contents Credits: Jos Schmid, Digital Vision / Jeremy Woodhouse, Keystone / MaxPPP / Leemage; Cover: Keystone / EPA / Patrick Seeger Discover more content, news and features on the T Magazine website at www.ey.com/tmagazine Access the App Store on your iPad to download the free T Magazine app T Magazine 07 Magazine Tax insight for business leaders The global executive 07 Tax as a factor in employee relocation A new breed of manager The rise of the stateless employee takes center stage The challenges of managing virtual teams 8 Cover 16 Features 8 __ From expat manager to global executive A competitive, globalized marketplace is reshaping the nature and dynamics of the expatriate assignment. Is your organization meeting this challenge? 14 __ Assessing the global executive As the global map for today’s expartriate changes, our infographic provides an overview of today’s expatriates. 16 __ Upward and outwardly mobile Increasingly global business leaders need to be mobile. This can have costs, both personal and financial, as well as presenting challenges for employers. 20 __ Preparing a new human age T Magazine interviews Françoise Gri, President of ManpowerGroup Southern Europe and one of Fortune’s Global 50 Most Powerful Women in Business. Focus 22 __ Living costs How the relative costs of the world’s business cities are evolving in line with shifts in the global economy. 28 __ The stateless employee Managing an increasingly mobile workforce presents a new set of challenges to meet associated tax obligations for employee and employer alike. Management 30 __ Making relocation a success Expatriate postings all too often end in failure. So what can be done to help ensure a successful assignment? 34 __ Human capital on the move The traditional pattern of West to East migration is giving way to a new multipolar reality for expatriates. 36 __ Managing in a virtual world Effectivly managing virtual, multinational teams requires both new tools and different approaches. 40 __ Welcome back. Now – please don’t leave! Returning expatriates are far more likely to leave an organization than their compatriots. How can this be avoided? 44 __ Who’s next? An effective CEO succession planning strategy is crucial to the long-term success of any company. Why do so many corporate boards struggle? Outlook 48 __ Developing global leaders Professor Manfred Kets de Vries, founder of INSEAD’s Global Leadership Centre, writes on future challenges and tomorrow’s global business leaders. “Our disadvantage as an economic zone is the coexistence of 27 different national systems. Of course, variety can also be a bonus. But what we do need is a common framework and common rules, so that employees can move inside the EU without barriers.” Martin Schulz, President of the European Parliament, in an interview with T Magazine on free movement of labor (see page 13). 4 T Magazine Issue 07 Ernst & Young 36
Global tax news A roundup of recent developments from major governments and tax administrations 1 France communications with HMRC February 2012 through an electronic system, A proposal was submitted to part of efforts to streamline parliament for the introduction VAT procedures. These of a tax on certain financial encompass applications to transactions, which would be register for VAT, make returns, introduced from 1 August submit claims, and keep 2012. It proposes taxes on the transaction of shares of accounts, among other things. publicly traded companies 3 South Africa established in France, whose February 2012 capital is valued at over South Africa will switch from €1b, at a rate of 0.1% of the its current secondary tax on value of the shares traded. companies to a dividend High frequency and automated withholding tax, as of the first trading operations would be of April 2012. The new tax is taxed at 0.01% on the amount essentially a tax on the of cancelled or modified shareholder, rather than the orders above a ceiling. company, and is calculated at a 15% of the net amount of 2 United Kingdom the dividend declared, up from February 2012 The UK’s HM Revenue & the 10% initially proposed. Customs (HMRC) published 4 Canada draft updates to its VAT law and January 2012 regulations, aimed at enabling Effective January 1, 2012, the businesses to make specific federal corporate tax rate was 4 2 1 5 3 Ernst & Young Issue 07 T Magazine 5 6 7 News cut to 15%, from 16.5%. Certain 6 Finland accelerated tax depreciation January 2012 incentives for manufacturing The Finnish government and processing equipment were confirmed amendments to extended through to 2013. its corporate and individual During 2011, new legislation taxation rules, as part of its was introduced to curtail the 2012 budget. Within this, use of partnerships to achieve a the corporate tax rate was tax deferral and draft legislative reduced to 24.5%, while proposals were released related the special withholding tax on to foreign affiliates. certain dividends was cut to 18.38%. 5 Portugal January 2012 7 China Portugal confirmed a range of January 2012 tax amendments in January, China’s Ministry of Finance affecting both corporate and increased the tax threshold income tax rates. Withholding of its windfall tax on the taxes on investment income oil industry, from $40 per were increased, along with the barrel to $55. Progressively tax rate applicable to capital high taxes are applied gains on the sale of shares. The thereafter, with a maximum rate of autonomous taxation on rate of 40% for any prices profits distributed to entities above $75. This applies to wholly or partially exempt from all oil companies operating in corporation tax was also China effective from increased in certain cases. 1 November 2011.
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Page 3: Stephan Kuhn Your feedback We work
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Page 49 and 50: Biography A clinical professor of l
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