In this third session, we discuss taxation of deferred compensation, social security and the application of totalization agreements, and compensation structuring for international mobility. Listen to the recording of this great event now!
In the second installment of this 3-part series, we will discuss: - Taxation of typical assignment types - An introduction to tax equalization/protection - Taxation of short-term assignees and business travelers - Application of tax treaties
Income tax is often the largest cost item in an international assignment. An accurate determination of hypothetical and gross-up taxes is essential to the design of equitable expatriate compensation packages.
When a company sends an employee on a tax equalized assignment, the company agrees to cover the worldwide incremental tax obligations for that employee due to the assignment. Without proper planning and processes, the total costs for the company, or the timing of the tax payments, can result in some very unpleasant surprises.