Understanding Third Country National: Legal Definition and Context

Definition & Meaning

A third country national (TCN) refers to an employee who does not hold citizenship in either the home country or the host country where they are working. For instance, if a French citizen is employed at a subsidiary of a U.S. company located in Hong Kong, that individual is classified as a TCN. This classification is significant because it influences the application of labor laws and taxation regulations, which can vary depending on the respective countries involved.

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Real-world examples

Here are a couple of examples of abatement:

1. A Brazilian engineer working for a German company in Canada is considered a TCN, as they are not a citizen of either Germany (the home country) or Canada (the host country).

2. A South African professional employed by a Japanese firm in Australia is also classified as a TCN, given their citizenship status.

Comparison with related terms

Term Definition Key Differences
Expatriate An employee sent to work in a foreign country, typically holding citizenship in the home country. Expatriates are citizens of the parent company's home country, while TCNs are not.
Local National An employee who is a citizen of the host country. Local nationals are citizens of the country where they work, unlike TCNs.

What to do if this term applies to you

If you are a third country national or are considering hiring one, it is essential to understand the applicable labor laws and tax obligations in the host country. You can explore ready-to-use legal form templates on US Legal Forms to help manage employment contracts and compliance issues. For complex situations, seeking professional legal assistance may be advisable.

Quick facts

Attribute Details
Typical Fees Varies based on legal services required.
Jurisdiction Depends on the host country's laws.
Possible Penalties Non-compliance with local laws may result in fines or legal action.

Key takeaways