Tax Policy.docx - 1.1 Tax Equalization Policy The objective of the tax equalization policy is to treat the expatriates as fairly and equitably as

Tax Policy.docx - 1.1 Tax Equalization Policy The objective...

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1.1 Tax Equalization Policy The objective of the tax equalization policy is to treat the expatriates as fairly and equitably as possible by ensuring that an employee’s tax burden on international assignment is approximately the same as if he/she remained in the home country. The tax equalization policy is designed and intended neither to yield an economic benefit nor to incur an economic loss for the expatriate on international assignment. Expatriates on international assignment will be responsible for a hypothetical home country tax liability as though they had remained in the home country. This hypothetical tax represents the cost that the employee must pay regardless of the actual tax liabilities incurred. Actual host country liabilities will be withheld and paid on the expatriate’s behalf by the company. 1.2 Tax Advice and Preparation Tax Advice and tax preparation service will be provided by the company and the operation organization at both Home and Host locations. The operation organization should be responsible for the tax reporting and payment in the Host country in the name of expatriate. At the end of
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