Working abroad results in different tax obligations for employees compared to if they had stayed in the home country. This is because the income is earned in another country and, in the case of a transfer of tax residence, also in relation to the employee’s resident status.

To reduce potential differences in tax burdens on the employee’s total income, companies adopt tax neutrality policies, with the aim to offset the tax effect of expatriation. International companies typically apply several policies, including:

  • Tax equalization,
  • tax protection,
  • gross-net-gross
  • net guaranteed.

Working abroad results in different tax obligations for employees compared to if they had stayed in the home country. This is because the income is earned in another country and, in the case of a transfer of tax residence, also in relation to the employee’s resident status.

To reduce potential differences in tax burdens on the employee’s total income, companies adopt tax neutrality policies, with the aim to offset the tax effect of expatriation. International companies typically apply several policies, including:

  • Tax equalization,
  • tax protection,
  • gross-net-gross
  • net guaranteed.