Expat Assignment

At the end of the section we present an expat employment contract checklist that you can use to assess whether the contract you are offered contains all the relevant provisions and that all elements of expat contract negotiation have been covered.

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These figures do NOT include the lost business opportunity costs, the losses on human capital and morale, the family and personal distresses, and most importantly for the future of the talent pool, the dissonance that leads to radically increased attrition rates upon return.

The purpose of using the IAP in a preparation program is to ensure that all the key issues are addressed BEFORE embarking on the assignment.

The IAP replaces four to five hours of interviews with an on-line interview of the employee and spouse/partner, and analyzes the results to produce a prioritized working list of the key issues, as well as an analysis of the family's strengths and challenges in adapting to the specific location.

So an individual seconded from (say) the UK to the United States would have an amount of ‘hypothetical tax’ withheld from their earnings each month in line with what they would have paid on the non-expatriate parts of their salary package if they had remained in the UK.

It follows that the individual therefore suffers no personal tax burden as a result of the expatriate aspects of the assignment such as cost of living allowance, disturbance allowance and accommodation in the host country.

In order to calculate final liability to host country tax to be borne by the employer it is necessary to undertake a process known as ‘grossing up’.

We will not explain this in detail, however suffice to say that the company often needs to bear a far greater level of tax to that which the individual would have paid if they had simply stayed at home or been responsible for meeting their own tax obligations in the host country.

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Comments Expat Assignment

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    Reply

    On the other hand, if the expat is to be employed by the overseas host and the home employment brought to an end, an assignment letter or agreement if you enter into one at all can be used to inform the expat of the practical arrangements for their transfer to the host entity but he or she should still be given appropriate notice of termination of their home employment and be required to enter into a new employment agreement with the host entity.…

  • Three Expatriate Compensation Approaches - MSI GTS
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    The objectives of each assignment, among other issues, should be measured before choosing the right compensation approach. Variations in laws, living costs, tax policies, and other factors all must be considered in establishing the compensation for expatriates. You want to maintain equity and consistency among the expatriate group.…

  • Expat Tax Equalisation How Does It Work? - Expat Network
    Reply

    It follows that the individual therefore suffers no personal tax burden as a result of the expatriate aspects of the assignment such as cost of living allowance, disturbance allowance and accommodation in the host country. The only ‘tax’ that the individual pays is the ‘hypothetical tax’ withheld.…

  • Expat Contracts and Expat Contract Negotiation. Expat Info Desk
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    Expat contract negotiation is one of the most critical elements of a move overseas if you are relocating for work purposes and negotiating a thorough and robust expat contract when you accept a job abroad as an expatriate is the single most important element of moving abroad. The benefits, allowances and conditional clauses you negotiate at this stage of the moving process will be crucial to ensuring that your new life abroad gets off on the best possible footing.…

  • Tips for a successful expat assignment -
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    In a merger, Suddenly you may end up with an expat and you need to work out what you're doing with that expat. You want to look closely at how the assignment is structured. A secondment versus a local hire will have an impact as well as the length of the assignment. Holding departure meetings will minimize future surprises on the assignment.…

  • TAXATION OF US EXPATRIATES -
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    Regardless of where the income is paid. As such, US expatriates must continue to file US tax returns and in many cases owe US tax during their foreign assignments. There are two special tax provisions used by US expatriates to reduce their federal income tax liability while on foreign assignment. These provisions are…

  • How to Prepare an Expat for a Successful Assignment Abroad
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    On Assignment Mentoring. The expat is exposed to new situations and experiences as soon as they arrive in the country. An assignee should be closely monitored and receive face-to-face coaching. Interactions between the expat and team members are observed. This coaching depends on the duration of the assignment and the assignee's needs.…

  • Expatriate Failure Reasons for Expatriate Failure
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    Culture shock is often one of the most typical reasons for expatriate failure. It occurs where a candidate is not fully prepared for the new culture their assignment requires them to be a part of, whether there are language barriers, strict laws or customs or even just a totally unfamiliar climate and daily routine.…

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