KPMG LLP’s Global Mobility Technology Services practice has released a KPMG LINK Cost Projector update to include a new incremental cost report designed to reflect true assignment costs and exclude base compensation.
KPMG LINK Cost Projector has long been a staple software for assessing the costs of international assignments and is used to prepare projections for more than 200 global companies. In the last year alone, over 30,000 cost projections have been done in the software. Originally released in 1990, the software provides tax calculation methodology for 84 countries and was the first system of its kind to incorporate the changes in calculation logic which were driven by the recently enacted Tax Cuts and Jobs Act on current and future international moves, at the beginning of January in 2018 when the tax reform law went into effect.
The most recent release of Cost Projector includes a new, highly anticipated report, which provides the incremental costs related to a potential assignment. For many global mobility programs, this incremental number is the true assignment cost which excludes base compensation and any related home country social tax costs.
The report’s tax calculation reflects employer home social tax and home corporate tax amounts attributable only to assignment allowances providing a true delta between stay-at-home costs and assignment costs.
“Quantifying incremental costs has long been a challenge for many organizations, especially related to quantifying the correct portion of social security costs. KPMG LINK Cost Projector’s team of professionals, and the system’s configurability are key in helping ensure that the incremental costs are correctly allocated and quantified to a granular level.
The update also includes short-term assignment logic for Portugal and Colombia which brings our total short-term country count to 58 as we roll out short-term assignment logic for all 80+ countries supported by the system.
For more on the new KPMG LINK Cost Projector platform, visit our webpage at the link show below.
And, to learn more about the latest U.S. tax regulations, visit our Tax Reform webpage at the link show here.