Multinationals unprepared for non-dom rules

Multinationals employing globally mobile staff are unprepared when dealing with the issues arising from Britain’s new tax rules for non-domiciled residents, according to a newly released survey by KPMG in the UK.

The KPMG report shows most respondents, who were HR professionals with responsibility for international assignments, said the changes to the non-dom tax rules were unlikely to affect their assignment selection processes.

However, when questioned on their likely reaction to specific issues such as whether they would be prepared to pay any additional UK tax the employee or their spouse could incur as a result of the rules, a significant proportion of the respondents appeared to have no firm policies.

‘Despite the non-dom rules’ complexity, it is surprising that large global employers have not made greater progress in adapting to this new legislation which has been in force since 6 April this year. It may well be the case that UK-based HR professionals are struggling to get these issues discussed outside the UK or amend global policies to reflect these peculiarly British rules,’ Sarah Robert, KPMG international executive services director in the UK, said.

Further reading:

Non-dom tax rules ‘unworkable’, tax experts say

Non-doms still in love with the UK