By Patrick Jurgens (re-posted by Michelle Curran)
Taxing Short-Term Assignments
Due to the brief nature of short-term assignments, the employee typically maintains their home country tax residency, which has an impact on the taxes owed. The employee/company may be exposed to potential double taxation where the same earned income is taxed in both the home and host locations. As a result, most countries offer double tax relief.
What is Double Tax Relief?
Double tax relief is exactly what it sounds like -- a means to minimize your tax exposure to avoid paying full taxes in both the home and host locations. There are four ways to claim double tax relief and calculating them by hand is challenging without advanced international tax accounting experience.