Expatriate Tax Equalization: Protection Policy Consulting & Compliance
We will prepare, consult on and explain individual tax equalization or tax protection arrangement options. These consulting engagements are logical extensions of our expatriate tax policy consulting services.
Expatriate tax equalization / protection policy consulting is a necessary and crucial step to any company wishing to employ the services of their employees abroad. This policy should clarify: the assignees responsibilities, pre-assignment policies, tax treatment of compensation items during the assignment, other tax policies during the assignment (state filings, foreign tax credit ownership, stock options, sale of a principal residence, U.S. and host country social security , tax advances and penalties and interest, others) and tax vendor consulting services. Policies relating to tax treatment of compensation items during the assignment, including items in consideration for the hypothetical tax calculation include: moving and relocation costs, housing, car allowances, education and home leave allowances, cost of living allowances (COLA’s), hardship premiums, tax equalization and protection arrangements, and personal income and losses such as for example alimony, interest, dividend capital gains and losses and many other matters both of a stay-at-home and foreign nature, should be addressed at the early stages and in writing to avoid future and costly misunderstandings.
Your company may have a well established tax equalization or protection program in place designed to compensate your assignees abroad to ensure that they pay no more worldwide income taxes than they would have paid had they remained in their current positions within the U.S., having not accepted their foreign assignment. Or, your company may not have such a pre-established program in place and may require the establishment of such a program. We are the independent, informed and competent professionals that can form the policy and then translate the words in to quantitative analysis and running the numbers. Either way, we can prepare, consult on and explain the various individual situations and come up with relevant, value added suggestions that can save you real significant tax dollars.
Please contact us for a free consultation and for further details.