Hypothetical Tax
There are strategies to deal with imbalances in tax rates between the home country and the host country, including tax equalization and calculation of a hypothetical tax.
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As discussed in this article, income taxation is an issue for both employers and employees when a worker is sent on a foreign assignment. There are strategies to deal with imbalances in tax rates between the home country and the host country, including tax equalization and calculation of a hypothetical tax. These measures can protect the employee from overpaying tax while on assignment, and give the employer a consistent method to deal with differences in tax rates...read more
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