The taxation of termination payments paid to internationally mobile employees is not subject to the usual residence rules. Employers should ensure that they correctly identify not just the UK tax treatment of the termination package, but also the foreign tax treatment. Employers must also consider the impact of any double taxation treaty on the final tax position. In that regard, the OECD has issued a discussion draft in relation to termination payments which proposes amendments to the commentary on the OECD model tax treaty.