5. Employee tax status and corporate strategy

The tax burden is an important factor for both the company and the employee. It is therefore essential to consider the tax implications of a secondment or expatriation, prior to departure. The company must seek to optimize these, especially as it may be required to assume the employee's tax liability.

Each state is free to set its own tax rules and to tax activities taking place on its territory, without necessarily taking into account taxes paid in another state. There is therefore a real risk that both states will seek to tax the activity, leading to double taxation. This is what the bilateral tax treaties signed by France with some 120 countries (see https://bofip.impots.gouv.fr/bofip/2509-PGP.html/identifiant=BOI-ANNX-000306-20180307...