In terms of expatriate pay, what does a firm typically do when a reciprocal tax treaty is not in force?
A) The firm requires the expatriate to pay one-third of the income tax to the host-country government.
B) The firm requires the expatriate to pay 50 percent of the income tax to the host-country government.
C) The firm pays the expatriate's income tax to the host-country government.
D) The firm requires the expatriate to pay the income tax to both the host-country and home-country governments.
E) The firm pays the expatriate's income tax to the home-country government.

Question

Quizplus · Accepted Answer

When a reciprocal tax treaty is not in force, firms typically pay the expatriate's income tax to the host-country government to avoid double taxation for the expatriate.

In Terms of Expatriate Pay, What Does a Firm Typically