Immigration Compliance - The German perspective

Gain insights on how Immigration is handled in German global mobility practices and internationally. We have compared the results of KPMG´s Global Assignment Policies and Practices Survey 2016 with the data from the German participants of the survey.

Just two key facts:

> Immigration considered as second most important topic when sending employees abroad (Germany: fourth important topic)

> 37% of all companies globally do not not have quality control procedures over immigration processes in place (Germany: 73%)

1. June 2017
Global assignment
policies and
practices survey
Immigration –The German perspective

2. 2
Document Classification: KPMG Confidential
© 2017 KPMG AG Wirtschaftsprüfungsgesellschaft , a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG Internatio nal”), a Swiss
entity. All rights reserved. The name KPMG and the logo are registered trademarks of KPMG International.
ImmigrationIncome Tax
Please identify the top three compliance topics in term of those which represent
the most challenges when relocating personnel
31% 24% 17% 14% 10% 3%
Permanent
establishment
Social Security
Employment law
Other
Note: Total may not add to due 100% due to rounding.
Source:KPMG International , GAPP Survey 2016
German Perspective
Income tax, social security and permanent establishment are considered as the top three compliance topics. Immigration is rated as fourth important topic.
Global Perspective

3. 3
Document Classification: KPMG Confidential
© 2017 KPMG AG Wirtschaftsprüfungsgesellschaft , a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG Internatio nal”), a Swiss
entity. All rights reserved. The name KPMG and the logo are registered trademarks of KPMG International.
37%
42%
45%
76%
80%
86%
93%
94%
Which of the following functions do you outsource?
(select all that apply)
German Perspective
Global Perspective
Tax consultation
Tax preparation services
Relocation services
Immigration and travel document services
Destination services
Assignment compensation collection and calculations (including cost estimates)
Certificate of coverage application/tracking
Expense processing
Immigration and travel document services
67%

4. 4
Document Classification: KPMG Confidential
© 2017 KPMG AG Wirtschaftsprüfungsgesellschaft , a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG Internatio nal”), a Swiss
entity. All rights reserved. The name KPMG and the logo are registered trademarks of KPMG International.
27%
Talent
management
41%
C-suite/
executive
level
57%
External tax
services
provider
45%
Corporate tax
63,6%
Corporate
tax
In addition to global mobility, what other stakeholder groups are involved in the pre-
assignment cross border risk review and selection process? (select all that apply)
Source:KPMG International , GAPP Survey 2016
German Perspective
Global Perspective
Responsible
business
manager
72,7% 45,5%
External tax
services
provider
27,8%
External
immigration
counsel
54,6%
C-suite/
executive
level
Responsible
business
manager
75% 49%
External
immigration
counsel
24%
Finance

5. 5
Document Classification: KPMG Confidential
© 2017 KPMG AG Wirtschaftsprüfungsgesellschaft , a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG Internatio nal”), a Swiss
entity. All rights reserved. The name KPMG and the logo are registered trademarks of KPMG International.
What types of organization(s) do you outsource immigration services to?
Source:KPMG International , GAPP Survey 2016
German Perspective
Global Perspective
Global law
firms
focused on
immigration
only
Firm that provides immigration and tax support Whichever immigration provider (not necessarily a law firm) our local office
choses
Global
relocation
Internatio- nallaw
firms
Whichever law firm our local office chooses Firms or companies belonging to a particu-
lar network (although unrelated)
71 2 3 4 5 6
Whichever immigration provider (not necessarily a law firm) our local office choses Global relocationInternational law firms
1 2 3

6. 6
Document Classification: KPMG Confidential
© 2017 KPMG AG Wirtschaftsprüfungsgesellschaft , a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG Internatio nal”), a Swiss
entity. All rights reserved. The name KPMG and the logo are registered trademarks of KPMG International.
Please indicate which of the following best describes your organization
(in relation to managing immigration needs).
German Perspective
Global Perspective
40%
21%
39%
36,4%
63,6%
Our HR or mobility teams handle immigration
locally at the destination country
We manage immigration centrally in our company
We manage immigration centrally in our company
We manage immigration regionally
Our HR or mobility teams handle immigration locally at the destination country

7. 7
Document Classification: KPMG Confidential
© 2017 KPMG AG Wirtschaftsprüfungsgesellschaft , a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG Internatio nal”), a Swiss
entity. All rights reserved. The name KPMG and the logo are registered trademarks of KPMG International.
32%
21%
20%
25%
2%
9%
27,3%
27,3%
27,3%
9%
How would you rank the motivation to comply with immigration laws among key
business stakeholders?
German Perspective
Global Perspective
Critical
Very important
Important
Not front of mind unless raised by mobility/HR
as an issue
Frequently ignored
Critical
Very important
Important
Not front of mind unless raised by mobility/HR as an issue
Frequently ignored

8. 8
Document Classification: KPMG Confidential
© 2017 KPMG AG Wirtschaftsprüfungsgesellschaft , a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG Internatio nal”), a Swiss
entity. All rights reserved. The name KPMG and the logo are registered trademarks of KPMG International.
16%
19%
21%
28%
38%
51%
What are the key conditions included in your immigration compliance policy?
(select all that apply)
German Perspective
Global Perspective
We do not have an immigration compliance policy
Zero tolerance for immigration compliance breaches
Outline of process for achieving compliance
Management message outlining corporate compliance objectives
Consequences of non-compliance
Assignation of responsibility among parties for meeting corporate compliance objectives
Source: KPMG International , GAPP Survey 2016
80%
We do not have an immigration compliance policy

9. 9
Document Classification: KPMG Confidential
© 2017 KPMG AG Wirtschaftsprüfungsgesellschaft , a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG Internatio nal”), a Swiss
entity. All rights reserved. The name KPMG and the logo are registered trademarks of KPMG International.
6%
11%
11%
15%
15%
16%
65%
Which statement best describes your organization´s approach to use of IT tools
for managing immigration processes? (select all that apply)
German Perspective
Global Perspective
Source: KPMG International , GAPP Survey 2016
100%
We do not use IT tools to manage immigration processes in our organization
We do not use IT tools to manage immigration processes in our organization
We use an IT tool for data storage
We use an IT tool for case status monitoring
We use a global IT tool to manage immigration processes worldwide
We use several IT tools to manage all immigration processes in different locations
Our assignees have access to an IT tool while managing immigration processes
We use an IT tool for sending out automatic reminders to all parties involved in immigration processes

10. 10
Document Classification: KPMG Confidential
© 2017 KPMG AG Wirtschaftsprüfungsgesellschaft , a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG Internatio nal”), a Swiss
entity. All rights reserved. The name KPMG and the logo are registered trademarks of KPMG International.
9%
0%
9%
0%
73%
9%
8%
14%
17%
17%
37%
39%
Which statement best describes your organization´s approach to immigration
process quality control and risk tracking? (select all that apply)
German Perspective
Global Perspective
Source: KPMG International , GAPP Survey 2016
We have outside assess immigration document requirements for all travellers
We do not have quality control procedures over immigration processes
We set regular internal control procedures/reviews over immigration processes
We have an internal process for assessing immigration document requirements for all travelers
We set regular control procedures/reviews over immigration processes with outside counsel
We track post-assigmenttrailing liabilities
We have outside assess immigration document requirements for all travellers
We do not have quality control procedures over immigration processes
We set regular internal control procedures/reviews over immigration processes
We have an internal process for assessing immigration document requirements for all travelers
We set regular control procedures/reviews over immigration processes with outside counsel
We track post-assigmenttrailing liabilities

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can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a
thorough examination of the particular situation.
© 2017 KPMG AG Wirtschaftsprüfungsgesellschaft , a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG Internatio nal”), a Swiss entity. All rights
reserved. The name KPMG and the logo are registered trademarks of KPMG International.
Contact
Dr.Thomas Wolf
Partner, KPMG Law
T+49 30 530 199 300
M+49 172 3016459
F+49 30 530 199 111
twolf@kpmg- law.com
KPMG RechtsanwaltsgesellschaftmbH
Klingelhoeferstr. 18
10785 Berlin
Germany