For expatriates needing tax adjustments, in most cases the __________ method is used where MNCs deduct income taxes from the expatriate's salary at the rate that would normally be paid in the home country, and then pay any additional tax owed due to the higher local tax rates in the host country.
A)Tax Equalization
B)Tax Contingency
C)Tax Customization
D)Tax Protection

Question

Quizplus · Accepted Answer

Tax Equalization method is commonly used by MNCs for adjusting expatriate taxes. Under this method, MNCs deduct income taxes from the expatriate's salary based on the tax rates in the home country and pay any additional tax owed due to higher tax rates in the host country. This ensures that the expatriate is not unfairly taxed and is not at a disadvantage compared to other employees in the host country.

For Expatriates Needing Tax Adjustments, in Most Cases the __________