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Global Mobility Handbook 200 Global Mobility Handbook 2009 Edition Global Mobility Handbook This may qualify as “Attorney Advertising” requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome. © Baker & McKenzie 2008 All rights reserved. This publication is copyright. Apart from any fair dealing for the purpose of private study or research permitted under applicable copyright legislation, no part may be reproduced or transmitted by any process or means without the prior permission of the editors. Save where otherwise indicated, law and practice are stated in this volume as at August 2008. IMPORTANT DISCLAIMER: The material in this volume is of the nature of general comment only and is not intended to be a comprehensive exposition of all potential issues arising in the contest of a cross-border or multi-jurisdictional transaction, nor of the law relating to such issues. It is not offered as advice on any particular matter and should not be taken as such. Baker & McKenzie, the editors and the contributing authors disclaim all liability to any person in respect of anything done and the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or part of this volume. Before action is taken or decision not to act is made, specific legal advice should be taken in light of the relevant circumstances and no reliance should be placed on the statements made or documents reproduced in this volume. Baker & McKenzie International is a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a “partner” means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an “office” means an office of any such law firm. Global Mobility Handbook Related Publications Baker & McKenzie’s Bakerimmigration.com web site provides links to current articles, practice group members, and other resources for global mobility professionals. Baker & McKenzie’s Global Migration & Executive Transfers Update is a quarterly publication focused on global mobility issues. Baker & McKenzie’s Global Migration & Executive Transfers Alert is a periodic publication providing timely information on new developments in the global mobility arena. Baker & McKenzie’s The Global Employer is a quarterly publication covering labor, employment, employee benefits, and immigration topics of interest multinational employers in all of the major jurisdictions of the world. For further details on any of the information in this handbook or to obtain copies of any of the related publications listed above, please contact either of the editors, your Baker & McKenzie contact partner, any of the contributing lawyers listed on the following pages, or any of the Global Migration and Executive Transfer professionals listed at Bakerimmigration.com. Further details on the firm, our people and our practice may be found at www.bakernet.com. i Baker & McKenzie EDITORS’ NOTE This handbook is a product of the efforts of numerous lawyers throughout Baker & McKenzie, including the contributing lawyers listed on the next page. The editors are extremely grateful to these knowledgeable lawyers for their work and keen interest to provide readers with a clearer appreciation of the business and legal considerations associated with global mobility assignments. We want to acknowledge the legacy of William Kuo, who laid the foundation for our global practice and this publication over the many years that he led efforts to develop and publish the firm’s Immigration Manual. Special thanks to our former colleague, Hélène de Bruijin-Jonker, who continues to be of invaluable assistance in the Netherlands and on this publication. C. Matthew Schulz, Partner Raúl Lara-Maiz, Associate Editor Editor Tel: +1 650 856 5528 Tel: +52 81 8399 1302 [email protected] [email protected] ii Global Mobility Handbook Contributors Narendra Acharya, Partner Rizal Dharma, Associate Chicago Jakarta Lara Ahner,Associate Valerie H. Diamond, Partner Frankfurt San Francisco Aliaga Akhundov,Associate Alan Diner,Associate Azerbaijan Toronto Nasser Alfaraj, Partner Carlos Dodds, Partner Manama Buenos Aires Julia Borozdna, Associate Matthew Dougherty,Associate Moscow Tokyo Ricardo Castro, Partner Susan Eandi, Partner Manila Palo Alto Azamat Chinetov, Associate Carlos Felce, Partner Almaty Caracas Michelle Chong, Partner Tatiana Garcés, Partner Kuala Lumpur Bogota Rita Chowdhury, Sr. Counsel Ignacio Garcia, Partner Sydney Santiago John Connors, Partner Pablo Gargano, Associate Almaty Buenos Aires Giuseppa D’Arrigo, Associate Tony Haque, Associate Milan London Hélène de Bruijin-Jonker Samantha Healey, Associate Amsterdam Sydney Catarina De La Barra, Associate Martin Huger, Associate Santiago Vienna Carlos Delgado, Partner Joanna Jasiewicz, Associate Caracas Warsaw iii Baker & McKenzie Zhi-Xiang Ke, Associate Ilgar Mehti, Associate Singapore Baku Sinead M. Kelly,Associate Oanh Hoang Kim Nguyen, Partner San Francisco Ho Chi Minh Karin Konstantinovová, Associate Serge Pannatier,Associate Prague Geneva Ute Krudewagen, Associate Maxime Pigeon, Associate Palo Alto Paris Azamat Kuatbekov, Partner Sylwia Puzynowska, Partner Almaty Warsaw Elena Kukushkina, Associate Evelyn Romero, Associate Russia Bogota William Kuo, Partner C. Matthew Schulz, Partner Hong Kong Palo Alto Victoria Kushner,Associate Nia Sujani, Partner Moscow Jakarta Richard Lam, Associate EeYan Tan, Associate Singapore Kuala Lumpur Sheau Yiing Low,Associate Iris Van Tilborgh, Associate Kuala Lumpur Brussels Pamela Mafuz, Associate Prachern Tiyapunjanit, Partner Madrid Bangkok Raúl Lara-Maiz, Associate Antonio Vicoli, Associate Monterrey Milan Mariana Marchuk, Associate Safari Watanabe, Partner Kyiv Tokyo Alessandro M. O. Martins, Associate Wei Kwang Woo, Associate Brasilia Kuala Lumpur Daniel Matthews, Partner Daniel Zhang, Associate Baku Hong Kong iv Global Mobility Handbook Table of Contents SECTION 1 INTRODUCTION . .1 SECTION 2 MAJOR ISSUES . .5 Immigration . 6 Employment . 11 Global Equities . 14 Taxation and Social Security . 24 SECTION 3 COUNTRY GUIDE . .41 Argentina . 42 Australia . 50 Austria. 59 Republic of Azerbaijan. 68 Belgium. 73 Brazil. 85 Canada . 94 Chile . 106 The People’s Republic of China . 112 Taiwan, Republic of China. 119 Colombia . 134 Czech Republic . 139 France. 145 Germany. 152 Hong Kong Special Administrative Region . 160 Republic of Indonesia . 171 Italy . 177 Japan . 184 v Baker & McKenzie Republic of Kazakhstan . 197 Malaysia . 203 Mexico . 210 Kingdom of The Netherlands . 221 Philippines . 229 Poland . 236 Russian Federation . 250 The Kingdom of Saudi Arabia. 261 Singapore. 266 Spain. 276 Switzerland . 285 Thailand . 297 Ukraine. 303 United Kingdom. 309 United States of America . 322 Bolivarian Republic of Venezuela. 334 Socialist Republic of Vietnam. 339 vi SECTION 1 INTRODUCTION Baker & McKenzie Introduction In today’s economy, the global movement of employees is essential. Getting the right people to the right places at the right time, with proper support, is critical to the success of far-flung businesses. Human resource professionals and corporate counsel are confronted with a maze of legal issues that must be considered before moving employees across borders. When can they go? How long can they stay? What can they do while there? Can they work? How can they be paid? What happens to their employment benefits during the trip? Who will be the employer during the trip? What are the tax consequences of the trip to the employer and the foreign employee? What about their family? These issues confront employers dealing with short-term business travelers, as well as long-term, employment assignments. This is a global mobility handbook to help guide you. The Global Mobility Handbook The first section of this handbook identifies the key global mobility issues to consider regardless of the countries involved. Although the issues are inevitably intertwined, the chapters separately deal with immigration, employment, employee benefits, and taxation. The second section is organized by country. For each country, this handbook provides an executive summary, identifies key government agencies, and explains current trends before going into detail on visas appropriate for short-term business travel, training, and employment assignments. Other comments of interest to global human resource staff, as well as Baker & McKenzie local office contact details for further information are also provided. Global Labor, Employment and Employee Benefits There is often a gap between business necessity and practical reality when it comes to moving executives and other personnel to new countries. You have to anticipate and deal effectively with a host of interconnected legal issues and individual concerns. Baker & McKenzie offers comprehensive legal advice on executive transfers – delivered locally around the world. We help employers plan and implement global transfers and provide on-site coverage to companies and employees in most major business communities around the globe. 2 Global Mobility Handbook Section 1 – Introduction Our network of Global Migration, Employment, Global Equity Services, and Taxation lawyers assists both pre- and post-transfer to ensure that employment contracts are complete and enforceable, that employee benefits meet needs and relevant legal requirements, and that tax planning is sound and defensible. Our knowledgeable professionals are qualified and experienced
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