Employing foreigners through a tax advisor’s perspective
26.11.2015Company: Forvis Mazars s.r.o.
The employment of foreigners is nothing exceptional or new in this day and age. Nevertheless, in my years of experience I still encounter a lack of knowledge in this issue, especially on the part of employers. Meanwhile, the ignorance of legal standards related to the employment of foreigners can have very unfortunate circumstances not only for the employee himself, but also for the company.
If a Czech company decides to employ a foreign citizen, either in cooperation with a foreign company or not, it is best to plan it all sufficiently in advance. There are a wide range of obligations towards the labour office, foreign police, social security and health insurance institutions, financial authorities and others that apply when employing foreigners. If this concerns an employee sent by a foreign company to its Czech branch then, from my perspective, it is especially worthwhile using the services of a consultation company dealing with the issue of the posting of employees.
It will not only take care of all the forms and administration required when posting an employee, but will also optimally set up the posting structure both for the sent employee and any of his family members, but also for the posting and home company from the perspective of taxes, social security, health insurance and the overall administrative burden.
Author: Gabriela Ivanco, Tax Advisor, MAZARS
