Tax equalization allowance ensures that the worker neither gains nor loses with regards to tax liability as a result of an international assignment.

Question

Quizplus · Accepted Answer

Tax equalization allowance aims to ensure that the employee's tax liability remains constant and does not increase or decrease during the international assignment. This helps to protect the employee from the potential negative effects of varying tax rates between countries. Therefore, the statement is true.

Tax Equalization Allowance Ensures That the Worker Neither Gains nor Loses