1. Nexia Annual Tax Conference Expatriate Tax Services Vienna – 31 May 2008

2. What we will cover in this session Overview of the current market place- Inez Anderson, Smith & Williamson, London Overview of the services we can offer- Dale Mason, The Wolf Group Washington Case Studies - Wilma Ehlert, DHPG, Bonn - Shanker Iyer, The Iyer Practice, Singapore Update from the Taskforce- Inez Anderson Questions

3. What do we mean by expatriate tax? Tax and social security advice to an employer moving employees cross border to ensure: – Compliance in the home and host location, and – Minimise the cost of the assignment

4. The Current Market Place 900 Companies participated in ORC INC survey

5. The Current Market Place 1.Key concerns of employers: Tax compliance Social security compliance 2.Greater use of tax vendors: Ensure tax breaks maximised Ensure better management of filing of returns Ensure better management of tax payments

6. Dale Mason

7. Why Do Clients Need Expat Tax Services? Client issues –Tax return filings –Payroll and income reporting –Pension and benefits participation High cost of international assignments –Typically cost is 3 – 4 times base salary Compliance with the law is a real concern! Employees should focus on their jobs, not taxes

8. Expatriate Tax - Employer Services Assignment policy advice Compensation structuring Cross-border tax & pension planning Tax equalization & hypo tax calculations Payroll withholding and reporting Transfer pricing & PE issues

9. Expatriate Tax - Employee Services Exit/Entry interviews Home/host country tax return preparation Social security tax issues Inheritance tax issues

10. Expat Tax Service Fees – Avg. Fees Entry/Exit Interviews $500 - $600 Tax return preparation $1,500 - $2,000 Hypo tax &. equalization $1,000 - $1,500 Total Annual Fees/Expat $3,000 - $4,100 Policy development $10,000 - $25,000 Entre’ into other services

11. Wilma Ehlert

12. Practical issues with Expat clients Client: internationally leading manufacturer of special glass and plastic products; 41 plants in America, Europe and Asia; 10,800 employees German employees in Belgium, Bulgaria, China, Czech Republic, France, Mexico, Poland, Switzerland, U.S. NEXIA offices provide Expat tax services

13. The offer Tax servicesCountry ACountry BCountry CCountry DCountry E Entry Interview500 EUR300 EUR200 USD350 EUR500 EUR Preparation of yearly income tax return Expat: 1000 - 1500 EUR Ordinary non resident: 750 - 1000 EUR First year: 700 EUR Following years: 400 EUR ---First year: 900 EUR Following years: 500 EUR 1000 EUR Preparation of monthly income tax returns (per year) ---- 2400 USD------- Handling of appeals, calculation of tax equalization Hourly fees Partner (plus VAT if any) 200 EUR150 EUR300 USD200 EUR270 EUR Manager (plus VAT if any) 100 EUR 200 USD110 EUR150 EUR Contact PersonXXX

14. The case German employees are cross-border commuters Changes in HR department of a German subsidiary reveal that no tax duties have been fulfilled in Country C

15. Dealing with the client Referral of client to a responsible Partner Fees can directly be announced to Client Contact partner is specialist Contact partner provides quick and detailed response The case: –Economic employer –Transfer of payroll costs –Duties of German employer in Country C –Costs of tax protection

16. Dealing with the employee Referral of client to a responsible Partner Contact partner is specialist Contact partner is native speaker Contact partner provides comprehensible response to employee Joint Checklists and Tax Organizers The case: –Departure and Arrival Interviews –Amendments to German income tax returns –Preparation of income tax returns Country C –Personal tax duties (installments etc.) Country C –Calculating tax protection

17. Shanker Iyer

18. Expatriate Task force Sponsors :Norbert Neu Rajesh Sharma Members :US :Dale Mason Len Wolf Asia:Shanker Iver Europe : Inez Anderson Wilma Ehlert Sten Guersel Aim :-To make it easier for us to work cross border -To make it easier for us to sell these services

19. What we will be doing: Standard terms of engagement between Nexia offices Contact details for key Nexia members – updated regularly Indicative fees for the ‘core’ services Marketing tools Working together to seek out potential clients

20. QUESTIONS