We are a multidisciplinary practice focused on providing a full range of services and practical advice for employers to identify alternatives to hire employees and achieve tax and employment efficiencies, aiming to align the interests of both mentioned parties and foster the employees’ work in business results.  

Our team is comprised of lawyers with expertise in different practice areas such as tax, labor, immigration, banking and foreign exchange. This allows us to provide efficient, comprehensive and innovative advice to identify and implement employee remuneration and retention schemes, tax planning for the employee, and legal advise for the business regarding its tax and labor burden.

SERVICE PORTFOLIO

• Executive compensation and estate planning

Identifying and implementing employee compensation and talent retention schemes, particularly at the executive level, and tax and estate planning for the employee while providing advice to the company in relation to tax effects and possible optimization mechanisms for the employer and employees.  

Advice on compensation schemes that, within the framework permitted by law, reduce the employer's benefit burden and provide greater monthly liquidity to employees. Assistance in the formalization of extra-legal benefits (salary and non-salary payments) and their correct setting for the payment of Social Security and payroll taxes contributions. 

Review of executive compensation schemes according to local market parameters, in a competitive manner, so as to retain talent in the company. 

• Stock-based compensation and equity-based incentives 

Comprehensive analysis and accompaniment of the action plans to be implemented with employees as compensation and retention schemes, identifying the different alternatives (stock options, restricted stock units, and phantom shares, among others), the fiscal, legal, corporate, and foreign exchange effects of these schemes, analyzing the different alternatives that can be implemented and adjusting them to the business of each company. We also provide advice in the evaluation, update and analysis of schemes already implemented. 

• Consulting, employee tax benefits and compliance

Day-to-day advice on payroll taxes, support in the implementation of employee benefits, their correct setting in terms of withholding tax, social security contributions, and corporate compliance, particularly in compliance with environmental, social and corporate governance (ESG) criteria, which also allows us to generate greater talent retention. 

Among others, we offer advice and support in the implementation of benefits for remote work schemes (telework and work from home), benefits in cases of maternity and paternity, benefits related to pets and children of employees, education, and other benefits that represent emotional salary for employees, 

Additionally, we advise our clients in the definition of remuneration schemes and the structure of benefits, according to salary studies based on the local market and by industry. For this purpose, we have alliances with third parties specialized in conducting salary and benefits studies.

Our advisory services include training, audits and payroll settings that generate efficiencies for our clients and mitigate risks in case of requirements and audits by the authorities. We also offer support in the process of implementing the electronic payroll required by the DIAN.

• Termination of employment agreements

Labor counseling to evaluate the legal alternatives for the termination of employment contracts and define the one that best suits the needs of the client, and advice in the review and / or preparation of final liquidation of labor accruals of employees in scenarios of termination of employment relationships. 

Tax advice on the impact for the employee, calculation of withholding and risk determination and mechanisms to mitigate the risk of expense deduction.

Different scenarios may be analyzed to define the one that best suits the company and the employee in each case. 

• Expatriates

Advice to the employee in relation to the tax regime applicable to the foreign employee and his family members, calculation of his/her net income, compensation scheme and optimization alternatives. 

Advice to the Company in connection with the calculation of withholding tax, net income forecast (gross-up), expense deduction, risk for foreign companies in connection with a Permanent Establishment, and international recoveries. 

Analysis of the pension status of foreigners in Colombia. 

• Pensions

Legal advice to individuals in relation to the procedure to be followed to process and apply for a pension in each of the pension systems, as well as in the claim and calculation of the monthly pension. 

Advisory in the event of a change of pension scheme and in the implementation of alternative arrangements that allow planning and designing a better pension scheme.

Advice to employees who are going to retire in tax planning, claims and calculation of the monthly age pension.

EXPERIENCE

• We have advised different companies in the implementation of institutional benefit plans and bonus payments. 
• We evaluated the effects of a tax reform on the tax benefits of voluntary pension contributions for an insurance company. 
• Structuring, implementing and advising on equity compensation for different companies, including startups and Fintech companies. 
• Tax planning for employee retirement, seeking to optimize the tax burden and mitigate risks of questioning deductions by the DIAN.