For companies seeking local and global expansion, a key challenge is the financial dilemma of how to attract and retain quality personnel in Israel and beyond. Optimally, these investments in employees should contribute significantly to the company’s assets.

Like any financial consideration, a cost-benefit analysis must be performed when transferring an employee to a new workplace. When relocation to another country factors in, the calculation is much more complex, and components related to tax liability in the destination country must be taken into account – a detail employers and their accountants are sometimes completely unaware of.

Our accountants from the relocation department assist numerous companies in this process. Together, we refine all the essential employer costs for sending an employee abroad. We map out the process several years in advance, perform a detailed calculation for each employee, including salary calculations and withholding tax calculations for exercising options and shares. In a competitive world, it’s important to remember that sought-after employees receive many financial incentives to move and work in different destination countries. Employers often find themselves facing a complex and intricate set of considerations, and it’s not always clear what the final cost of the move will be, and whether it will ultimately be financially viable for them and meet all requirements in the destination country.

As accountants who accompany many businesses, we urge anyone considering sending an employee abroad to act responsibly regarding the senior employee’s salary component and the proper management of the business. To ensure everything is done in the best possible way and that both sides benefit, it is essential to involve expert accountants who are proficient in international taxation and plan a beneficial and fair deal for all parties.