Global Mobility Flashcards
7 cards from real GPHR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Global Mobility flashcards as text
A 'permanent establishment' (PE) risk in global mobility arises when:
Answer: An employee's activities in the host country create a taxable business presence for the company
If an employee's work activities in a country create a PE, the company may become liable for corporate taxes in that jurisdiction.
The 'home country approach' versus 'host country approach' to global compensation primarily differs in:
Answer: Whether pay is benchmarked against home-country or host-country market rates
The home country approach anchors pay to the employee's origin market, while the host country approach aligns pay with local norms in the destination country.
Which type of international assignment structure is most commonly used for intracompany transfers within multinational corporations?
Answer: L-1 intracompany transferee visa (in the US context) or equivalent intracompany transfer category
The L-1 visa category (US) and its equivalents globally are specifically designed for employees transferred within the same multinational organization.
Cross-border remote work arrangements create compliance challenges primarily related to:
Answer: Tax nexus, social security obligations, and potential PE exposure in the employee's work location
Remote workers crossing borders can inadvertently trigger tax residency, social security liability, and permanent establishment risks for their employer.
A 'hypothetical tax' (hypo tax) deduction in a tax equalization program is:
Answer: A notional deduction from the employee's paycheck representing what they would have paid in home-country taxes
The hypo tax deduction calculates what the employee would have paid at home and deducts it from their paycheck, ensuring they bear only their home-country tax responsibility.
Which of the following best describes a 'look-through' arrangement in global mobility payroll?
Answer: A payroll structure that makes a foreign employer legally invisible by routing pay through a local entity
Look-through or employer-of-record arrangements allow global companies to pay employees through a local entity to satisfy host-country employment and payroll law requirements.
Under GPHR competency frameworks, which skill is most critical for managing global mobility compliance effectively?
Answer: Understanding of international tax, immigration, and employment law intersections
Global mobility compliance requires navigating the overlap of immigration law, tax treaties, social security agreements, and local employment regulations simultaneously.