The rules for international commerce are changing. They stayed much the same for many years and were generally simple across the globe. For example, taxes were due to a foreign country for only a long-term presence, such as an employee assignment or secondment. Now, there are tax consequences for employees who travel on behalf of all organizations, including tax-exempt and mission-driven entities, and for all employees regardless of role, such as fundraisers, administrative staff and even attendees of conferences and meetings.
Compensation, too, is becoming more complex, with rules about reasonable salary levels varying, or nonexistent, within the United States, Israel and other countries.
With headquarters in one country and representation in others, Jewish and Israeli organizations — along with other globally operating entities — need to not only continue to align with local laws and customary practices, but also understand and comply with their changes, as well as the evolutions in global workforce rules
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to learn more about widely varying definitions of a "visit" and the fact that the terms "not-for-profit" and "tax-exempt" have no meaning in some places, diversity in concern for reasonableness of executive compensation and income tax withholding policies, and nexus and other site-specific taxation.
Visit the report overview for more articles: The State of the Not-for-Profit Sector in 2017
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Partner, Audit Services, Not-for-Profit and Higher Education Practices; Leader, Jewish and Israeli Sector
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