12-03-09 Acerta International explains complexness of salary split - a curse or a blessing
Acerta International specifically focuses on solving the juridical issues organisations, who deploy their employees internationally, are faced with. The possibility of looking at how to deal with the challenges international employment gives arise to already existed within Acerta but today that expertise has been bundled into a new department. That department had the opportunity of presenting itself this past march 10th as well as immediately demonstrating one of the most complex questions international dossiers provide us with.
- The birth of a new team
- An interesting option or not
- Making the right decision
- Additional information
Questions with answers on completely opposite ends of a spectrum suggest complexness. As is often the case with international financial constructions, the possibility of applying a salary split for internationally employed workers is indeed complex subject matter.
The birth of a new team
Tuesday 10 march, Geert Volders, general director Acerta Consult, had the pleasure of introducing Acerta Consult’s new approach towards the international labour market. While these were definitely not Acerta’s first steps on international terrain, Tuesday’s session did announce the birth of the new team focused on this specific subject matter: the legal consulting team Acerta International.
An interesting option or not
Heading this new team, Katia Deknop, managing consultant Acerta Consult, presented the many issues surrounding the salary split. An obvious question employers want an answer to is whether or not a salary split is an interesting option for them. Noting in first instance that what is perhaps beneficial for the employer is perhaps less interesting for the employee, Deknop, dug deep into this question instantly making clear that no easy answer would be forthcoming.
A mistake organizations often make according to Katia Deknop, is deciding on a salary split without taking the complete picture into account. In the past employers looked at a salary split as a possibility for tax optimization. A salary split is, however, not a construction that can be applied at the employer’s will. There are certain rules that have to be followed. For example, employees for which a salary split is applied, have to actually physically cross borders.
A second complication is that it does not suffice to know Belgian legislation. All countries have there own legislation with regard to social security. An example of this is the definition legislation uses to identify independents. While in one country a director might always be a considered an independent, this might not be the case elsewhere. National legislation of the country employees are active in also influences the potential attractiveness of applying a salary split.
Making the right decision
Social security issues, labour issues and tax issues; they all pose potential pitfalls within the salary split construction. Making the right decision then can only be done when understanding the complete picture. Acerta International provides clarity in the complex subject matter which is international employment; clarity turning a potential curse into a blessing.
Additional information
For more information, contact our international experts at 02 773 16 32 or international@acerta.be.
Take up contact with our international office:
Buro & Design Center
Heizel Esplanade PB 65, 1020 Brussel
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