Our client’s challenge: Our client needed to move 3 assignees from Norway to the Philippines for assignments ranging between 2 and 3 years, but had no entity or staffing experience in the host country. The client had been caught under PE rules on a former project in another jurisdiction and the resulting corporate tax charge had eliminated their profit for the entire project.
An additional complexity was the need to ensure that the assignees remained within the Norwegian social security system.
Our solution: We advised our client to suspend the assignee’s employment contracts and transferred the workers to NES Advantage, Norway. This ensured that they would be paid in NOK for the duration of the assignment, thus maintaining their Norwegian social security coverage. We then seconded the staff to our international office, NES Philippines, which would host the assignees for local immigration and shadow payroll purposes, ensuring compliance in the host country and mitigating any PE risk for the client.
As a result the 3 members of staff concerned were able to successfully complete their assignments whilst receiving full logistical support from our team.