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Russia: New Reforms Create Streamlined Business Visa but Toughen Sanctions

| January 22, 2013

Representatives and employees of multinational companies making investments in Russia will be able to obtain five-year business visas without an invitation letter. Temporary residence permit holders no longer need a work permit to work in Russia. Fines have been increased for individuals or organizations that facilitate unlawful entry.

The Russian government has announced several immigration reforms, including a new five-year business visa for employees of qualifying multinational companies, automatic work authorization for temporary residence permit holders, a new e-filing service for employers applying for employment or work permits, and increased sanctions for noncompliance.

New Five-Year Business Visa

The reforms create a new multi-entry business visa for representatives and employees of multinational companies making investments into the Russian economy. The visa will be valid for up to five years and will not require a government-issued invitation letter from a sponsoring entity. Russian entry visas are generally only valid for travel for up to one year, so the new visa will benefit frequent business travelers from eligible companies. Another benefit is that eligible companies will not be required to present a government-issued invitation letter from a sponsoring entity as part of their application.

The Russian government has not specified when the new five-year visa will become available, and the Federal Migration Service has yet to establish eligibility criteria or application procedures.

Automatic Work Authorization for Temporary Residence Permit Holders

Temporary residence permits are now free to work in Russia without a work permit. In addition, employers are no longer required to obtain an employment permit to hire temporary residence permit holders.

Temporary residence permits allow foreign nationals to live in Russia on a long-term basis as a step towards permanent residence, but previously they did not grant work rights. Permit holders were required to be sponsored for a work permit if they sought to take up employment.

E-Filing Service for Employment and Work Permits

Employers are now able to use online filing to submit initial applications for employment permits and individual work permits, as well as applications for permit amendments, renewals or duplicate copies. Employers using the new system are still required to submit paper versions of supporting documents after the initial online filing.

Tougher Sanctions for Immigration Violations

Foreign nationals who overstay a visa for more than 30 days after January 1, 2013 will be subject to a three-year ban on reentry from the date they exited Russia, unless they can demonstrate to the Federal Migration Service that there was a compelling reason for the overstay.

Fines for individuals or organizations that facilitate a foreign national’s unlawful entry into or transit through Russia have been increased to a maximum of 300,000 Rubles (approximately US$ 9,890). The severity of potential criminal sanctions has also been increased.

Fragomen worked closely with VISTA Foreign Business Support (Moscow) to prepare this alert. It is for informational purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen Global or send an email to emea@fragomen.com.

Source: Fragomen

China: Rules Altered on Permanent Residency to Lure Talent, Investors

| January 3, 2013

The Human Resources and Social Security Ministry of the People’s Republic of China (PRC) along with 24 other PRC government authorities jointly issued and enacted on 25 September 2012, the Administrative Measures on Entitlements of Foreigners with Chinese Permanent Residency (PR) in China [Ren She Bu Fa [2012] No. 53 (Circular No. 53)].

Circular No. 53 was issued to clarify the benefits entitlement of foreigners who hold PRC PR permits following the issuance of the Administrative Measures and Implementation Rules governing the approval of Chinese permanent residency for foreigners (Decree No. 74 of the Ministry of Public Security and the Ministry of Foreign Affairs) which specified the criteria, procedures, and administration of foreigners’ applications for permanent residency.

Key Entitlements of Circular No. 53

Foreigners who become PRC permanent residents are entitled to the same rights and obligations as Chinese citizens. The key entitlements worth mentioning are noted below.

Living and Working in PRC

Foreigners with PRC PR can live in China indefinitely, and can leave and enter China without the need to obtain visas, with a valid passport and foreigner’s Chinese PR permits. In addition, foreigners with PRC PR who wish to obtain employment in China are not subject to work permit application requirements.

Comprehensive Chinese Social Insurance Coverage in PRC

As with Chinese citizens, foreigners with PRC PR are covered by the Chinese social insurance system regardless of their employment status in China, which includes basic medical insurance and pension. They are also allowed to contribute to the Chinese housing fund and receive relevant benefits from the fund.

Investing in PRC

Foreigners with PRC PR are allowed to invest in China in the form of foreign-invested enterprises or foreign direct investment with the local currency (the renminbi) obtained from legitimate sources. They are also entitled to the same rights as Chinese citizens with respect to transactions involving banking, insurance policy, stock, futures, and other financial-related transactions.

Source: KPMG

Trends in Compliance

| December 19, 2012

Immigration (Corporate)

Companies must include intentions of foreign sponsorship in the due diligence process surrounding acquisitions. Most nations are increasing their scrutiny of who will be working in their country, why, when and for how long. The current economic difficulties have made many countries redouble their efforts to support national economies and to protect employment for their own citizens as much as possible. Not surprisingly, the administrative hurdles related to immigration have grown, and details regarding validity, rate of pay and roles and responsibilities are required. TRC advises clients to plan at least three months in advance for any international assignment.

Immigration (Individual)

Immigration laws are being more strictly enforced than in the past, and penalties can be steep. Increased post 9/11 scrutiny of border crossings and the amount of time spent in countries makes it much more likely that those who are not in compliance with local immigration laws will be detected. Some dodgy practices, such as working on tourist visas, have become even riskier than in the past, and can result in immediate deportation and even denial of future entry. All employees working in a foreign country must have the proper documentation and visa to support it. Failure to do so could result in fines or imprisonment for the employee and / or the employer.

Tax Treaties

Many countries have tax treaties in place with other nations to outline and identify when and under which circumstances taxes are due. Typically, an employee may work in another country for a certain number of days before a tax liability becomes due. It is important to keep careful track of the number of days worked in a foreign country, and to enlist the help of global tax experts to ensure compliance with the myriad requirements. Penalties can be severe.

Trends in Budgeting / Cost Containment for Global Assignments

| November 16, 2012

Global companies continue to refine their global policies to manage talent effectively, support strategic growth, consider individual/family needs and remain competitive in the marketplace. At the same time, they seek ways in which to provide sufficient benefits to attract and retain talent while avoiding frills and expensive exceptions. At TRC, we are most commonly seeing the following policy approaches to controlling assignment costs:

  • Exercising greater discretion in selecting candidates and factoring in their need for support
  • Applying a more limited cost of living allowance (COLA) policy
  • Revising or eliminating foreign service premiums
  • Developing an “expat lite” policy to include reduced benefits, using an efficient purchaser index
  • Introducing a bare-bones, “essentials” policy while allowing employees to keep home country benefits and long-term incentives.

Join TRC at the Worldwide ERC Global Workforce Symposium!

| September 25, 2012

Join TRC Global Mobility at the Worldwide ERC Global Workforce Symposium, October 3-5, 2012 at the Marriott Wardman Park, Washington, DC and unleash the power of talent mobility!

Talent mobility is the future of our global workforce! Find the knowledge and experts for this critical field at the Global Workforce Symposium as Worldwide ERC® delivers:

  • Trends in international assignments and emerging regions
  • How internal integration drives talent mobility strategy
  • Innovative ways to build global leaders and competencies
  • Techniques to optimize your talent mobility strategy and partnerships
  • Leading approaches to leveraging talent mobility investments

Unleash the power in Washington D.C. … and look to the future!

Visit TRC at Booth 111 and power up at our charging stations in the meeting room area!

TRC Global Mobility Named One of the Fastest Growing Private Companies in America

| August 31, 2012

Ranked #1251 on the 2012 Inc. 5000 list

Milwaukee, Wis. (August 21, 2012)

According to Inc. magazine, TRC Global Mobility, Inc. (TRC), a leading relocation management company, is one of the fastest growing private companies in America. With a position of 1251/5000, TRC placed near the top quartile of the 2012 Inc. 5000, an annual listing of growing, privately-held businesses.

“For TRC to be ranked in the 2012 Inc. 5000 demonstrates how the company has thrived in spite of a sluggish economy,” said Doug Berto, TRC’s president and CEO. “Our success speaks to TRC employees’ creativity, flexibility and commitment to our clients and their relocating employees. “

Berto emphasized that TRC’s growth is the result of careful planning: “We have no interest in growth just for the sake of bragging rights. Our growth stems directly from a careful assessment of the needs of our current and future clients, and the actions we’re taking to anticipate, and meet, those needs. We’re gratified that our message of independence, financial strength and stability, transparency and full-service global capabilities continues to resonate with a broad range of companies.”

For the past 30 years, Inc. has celebrated the fastest growing private companies in the U.S. In addition to TRC, first-time honorees for 2012 include CDW, Publix Supermarkets and Facebook. Past honorees have included Intuit, Zappos, Under Armour, Microsoft, Jamba Juice, Timberland, Clif Bar, Pandora, Patagonia and Oracle.

About TRC Global Mobility

TRC Global Mobility delivers comprehensive relocation and international assignment services in 150+ countries worldwide. We help our clients to further their business objectives by ensuring they have the right people in the right place at the right time, controlling costs and mitigating risks.

A financially stable, reliable partner, we bring our clients fresh perspectives backed by 25 years of relocation experience. TRC’s diverse client base represents a wide variety of products and services and ranges from smaller, start-up firms to Global 1000 companies. As an independent company, we’re free from corporate bureaucracy and preconceived notions. Visit TRC at trcglobalmobility.com.

Media Contact

Jerry Funaro, CRP, GMS
Vice President, Global Marketing
jerryf@trcgm.com
+1.203.925.2001

Relocation for Same-Sex Couples – Legal and Safety Issues

| August 27, 2012

PART 2

by Jerry Funaro, CRP, GMS
Vice President, Global Marketing, TRC Global Mobility, Inc.

The Confused (and Confusing) State of U.S. Same-Sex Marriage Laws

National and state marriage laws can present significant obstacles in relocating same-sex couples. The U.S. Defense of Marriage Act (DOMA) defines marriage as the legal union of one man and one woman, and the U.S. federal government does not recognize same-sex marriages performed in any jurisdiction.

DOMA also asserts that no state is required to recognize as a marriage a same-sex relationship that is considered a marriage in a different state. Today, 41 states have passed constitutional amendments or legislation limiting marriage to one man and one woman. In practical terms, if a transferee is legally married to a same-sex partner at the departure location, that marriage will cease to be recognized in most destination states.

To make things even more complicated, states with same-sex marriage recognize same-sex marriages from other states. States with same-sex civil unions usually recognize civil unions from other states, but not marriages. Some treat out-of-state same-sex marriages as civil unions. A handful of states that offer neither same-sex marriage nor civil unions have nonetheless recognized those statuses from other states, sometimes as domestic partnerships.

Things to Consider in LGBT Relocation

In short, a prospective transferee who has entered into a same-sex marriage or civil union in the departure location will certainly need to consider his or her legal standing in the new state. Aside from the emotional impact of becoming essentially divorced, a move to a non-marriage state could entail the loss of significant rights and benefits in terms of taxes, inheritance, medical decisions, adoption and more. Your prospective transferee will want to conduct thorough due diligence and possibly seek independent legal advice as part of the pre-decision process. A lawyer experienced in family law can craft wills and contracts to replicate some of the rights and privileges that come from a marriage or civil union.

International Assignment Issues

Read More

How to Handle Relocation for Same-Sex Couples

| August 9, 2012

PART 1

by Jerry Funaro, CRP, GMS
Vice President, Global Marketing, TRC Global Mobility, Inc.

Challenges and Concerns for Same-Sex Couple Relocations

During the past 25 years I’ve followed my partner’s career as a “trailing spouse” multiple times while working for several relocation management companies. This personal experience allows me to say that same-sex couples have many of the same relocation considerations as any other couple: the partner’s job, real estate, children, schools, cost of living, cultural issues, distance from family and friends and more.

But there are differences. In particular, the unsettled state of same-sex marriage and civil union laws across the United States and around the world can present significant challenges. Some locations pose safety and security concerns. It’s useful for companies to be aware of the considerations that same-sex couples face, and to learn what your organization can do to facilitate these relocations.

Read More

Register Now for Complimentary TRC Webinar, Today’s Mortgage Market: Strategies for Success

| July 20, 2012

September 25th Webinar to Focus on Navigating Today’s Mortgage Market

MILWAUKEE, Wis. (July 20, 2012)

With historically low rates, today’s mortgage market presents real opportunities for experienced and first-time buyers alike. But to help transferees succeed in today’s market, it’s important to have a thorough understanding of current options, rules and regulations.

Recognizing this, TRC Global Mobility (TRC), a leading relocation management company, will sponsor the webinar:

Today’s Mortgage Market: Strategies for Success, on September 25, 2012 from 2:00-3:00 p.m. EST.

Part of Worldwide ERC’s Learning Zone™ webinar series, this complimentary one-hour session will be hosted by Tom Dempsey, CRP, Vice President, Quicken Loans Relocation.

This interactive webinar will include a discussion of today’s market guidelines, creative program options and interest rates. We’ll take a look at broader economic factors influencing the mortgage market and current and possible legislation that could affect borrowers. After this session, you’ll be able to navigate the mortgage market successfully and with confidence.

The session is eligible for one domestic CRP® credit from Worldwide ERC®. Learn more and register at http://www.worldwideerc.org/Events/Pages/webinar-09252012.aspx

About TRC Global Mobility

Celebrating 25 years of relocation leadership, TRC Global Mobility is a U.S.-based, independently owned and operated firm that delivers creative, cost-effective solutions its clients’ U.S., international and government relocation challenges. TRC helps clients to further their business objectives by ensuring they have the right people in the right place at the right time, controlling costs and mitigating risks. TRC’s diverse client base represents a wide variety of products and services and ranges from smaller, start-up firms to Global 1000 companies. Visit TRC at trcglobalmobility.com.

Register Now for Complimentary TRC Webinar, Today’s Mortgage Market: Strategies for Success

| July 20, 2012

September 25 Webinar to Focus on Navigating Today’s  Mortgage Market
Strategies for Success

MILWAUKEE, Wis. (July 20, 2012)

With historically low rates, today’s mortgage market presents real opportunities for experienced and first-time buyers alike.  But to help transferees succeed in today’s market, it’s important to have a thorough understanding of current options, rules and regulations.

Read More

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