Under a tax equalization policy,the company retains the difference in taxes when an expat from a high taxation country is on assignment in a lower tax country.

Question

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Under a tax equalization policy, the company ensures that the expat pays the same amount of taxes they would have paid in their home country. If the expat is on assignment in a country with lower taxes than their home country, the company retains the difference to ensure that the expat is not disadvantaged by the tax implications of their assignment.

Under a Tax Equalization Policy,the Company Retains the Difference in Taxes