TCM module - Tax on Income

Avoid Income Tax in third party country -

how does the Travel Compliance Monitor help?

The Tax module avoids hidden assignments and helps to professionally manage the tax consequences of international travel in a professional manner.

Based on data from your travel management software (SAP Travel Management On Premise or Concur) and the relevant legal regulations for the relevant countries, the Travel Compliance Monitor monitors your employees' international travel. When one of the employees reaches the threshold for a country, which has been defined with you, the employee and his manager will be notified by an email.

This mail contains a link and the relevant action instruction for the employee. Now only the link has to be selected and the required actions have to be carried out in the displayed mask displayed in the program.

The manager receives with his mail also a link and relevant information about the employee concerned. Via the link he gets an overview of all international travel activities of his employees and can see at a glance, which employees are at risk of becoming liable for tax in the destination country.

Hidden assignment - real example

Initial situation

    Taxable income € 200,000
    Period 3 years
    Interest 0.04 % per day
    Penalties 5 % per month
    Tax rate in destination country 13%
    Tax rate in country of origin 21%

Payments

    Taxable income € 200,000
    Tax liability in destination country € 26,000
    Interest € 13,090
    Penalties € 53.793
    Additional projected costs € 76,877

Total costs €106,762
Additional costs of 411%