The most common taxation policy used by multinationals is:

Question

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Tax equalization is a common taxation policy used by multinational corporations. It ensures that expatriate employees are not disadvantaged by taxes when they are working in foreign countries. Under this policy, the company calculates the taxes that the expatriate employee would have to pay if they had stayed in their home country and adds the difference to their salary so that they are not financially worse off. This policy ensures fairness and prevents employees from being double taxed.

The Most Common Taxation Policy Used by Multinationals Is