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Writer's pictureDebbie McGee

Tax Liabilities for Short Term Foreign Assignments

Updated: Oct 10, 2022



A corporation sent five employees to Asia Pacific for several short-term assignments (3 to 9 months) over a 4-year span. The individuals were paid in the U.S., and although the corporation filed for a withholding waiver from the foreign government, the company never actually filed or paid the taxes on the individuals.


Six years later, the corporation received a notice for several hundred thousand USD in tax, penalty, and interest from the foreign government, requiring the individuals to obtain tax ID numbers in the country and file six years of back taxes. Only one of the individuals still worked for the company, so all the others had to be contacted and convinced to file the returns for the company to be allowed to continue operations in the foreign location.


PZI worked with the employees, to obtain the information needed to get the returns filed on time, implementing goodwill toward the former employees and mitigated potential employee lawsuits to the corporation.


Since 2014, PZI has provided highly transformative, customized international business and human capital management solutions to global corporations. Over the past two decades, our founder and CEO Deborah E. McGee developed a vision while innovating at successful multinational companies. Deborah's vision was to create a business with other highly-accomplished subject matter experts like herself and, in turn, effectively serve those managing global workforces. Whether a global corporation, government agency, or non-profit, PZI’s team is well-equipped to serve you in achieving your goals in improving performance. If you want to learn more about PZI Contact Us or visit our About page.

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