COVID-19 Spot Survey: Tax Ramifications of the CARES Act
KPMG recently polled nearly 50 global professionals in human resources, global mobility and immigration*, tax, finance, and legal* regarding the U.S. governmental response to the COVID-19 situation.
Some of the key findings include:
- Where cross border employees have been forced to work at home, nearly 45 percent of participating organizations reported they will continue to withhold tax as if the employee was still working in the country of employment. Of the respondents 25 percent are addressing the employee’s country of withholding on a case-by-case basis.
- Where business travelers have been forced to remain in the host location due to travel restrictions, 60 percent of responding organizations are continuing to view travel and lodging as short-term expenses for tax purposes.
- Almost 40 percent of organizations reported that they have considered the impact of the “recovery rebate” payments in their tax equalization policies, with a little over quarter of respondents reporting that they plan to collect “recovery rebates” via the tax equalization settlement if the recipient is not entitled to one under the organization’s tax equalization policy.
*Unlike certain other KPMG International member firms, KPMG LLP in the United States does not provide legal and immigration services.
COVID-19 Spot Survey - Tax Ramifications of the CARES Act
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