December 2015
Intermediate to advanced
313 pages
16h 2m
English
Content preview from International Business, 2nd Edition by Pearson
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218 International Business
■ Tax equalization: The allowance is meant to provide an adjustment to the expat based on tax
rates in the home country. Depending on tax treaties between the home and host country and
duration of stay, the expat may be taxed on income tax rules of both home and host country. This
allowance helps to smooth out the tax liability for the expat.
There are three basic approaches or policies to international compensation. These policies are:
1. Home-based policy: This policy links the base salary for PCNs and TCNs to the salary structure of
the relevant home country. For example, a US executive transferred to France ...
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