Tax equalization
If the employee is assigned to a country with lower taxes, the company takes the savings.On the other hand, if they move to a country with higher taxation, the company pays the excess.The purpose of such policies is to help companies fulfill international staffing needs without employees being incentivized or disincentivized from accepting particular assignments due to tax differences between countries.Does your tax equalization policy discourage individuals from acquiring property abroad?After this is calculated, the amount is deducted from an individual's net pay on a regular basis throughout his/her assignment abroad.