Individual Income Tax Equalisation Services
An expatriate employee may be subject to tax laws and regulations of both home country and host country and so may face additional tax liability as a result of the assignment. Many companies implement tax equalization policy to protect their employees from the additional tax liability.
Understanding Tax Equalisation
Tax equalisation is a policy that employers often adopt to ensure that their expatriate employees are not financially advantaged or disadvantaged by differences in tax obligations, i.e. to ensure their after-tax income remains consistent regardless of where they are working. If the actual taxes of expatriate employees are higher than they would have incurred in home country, employers would reimburse the excess.
Tax equalization helps companies to enhance employees’ satisfaction by ensuring their tax neutrality and to help attract and retain top talents across the globe.
How our services can help
We offer comprehensive Individual Income Tax Equalisation Services to employers in Mainland China. Our services are tailored to the specific needs of our clients and include the following key areas:
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country and host country. Based on this analysis, we develop a tax equalisation plan that ensures tax neutrality.
✓ Tax Calculation and Reimbursement: We accurately perform hypothetical tax calculation and actual tax calculation and
advise on the reimbursement.
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ensuring compliance with all relevant tax regulations. We keep our clients updated on any changes in tax laws or regulations
that may impact their tax equalisation policies.
✓ Employee Communication and Support: We help our clients to provide employees with clear explanations of their tax
obligations and entitlements under the tax equalisation policies.
