Process used by international companies to adjust employee pay to account for taxation
This article is about equalization of workers' taxes between countries. For equalization of assessed values for property taxes, see property tax equalization.
This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these template messages)
This article may be confusing or unclear to readers. Please help clarify the article. There might be a discussion about this on the talk page.(December 2019) (Learn how and when to remove this message)
This article includes a list of references, related reading, or external links, but its sources remain unclear because it lacks inline citations. Please help improve this article by introducing more precise citations.(December 2019) (Learn how and when to remove this message)
(Learn how and when to remove this message)
Part of a series on
Taxation
An aspect of fiscal policy
Policies
Government revenue
Property tax equalization
Tax revenue
Non-tax revenue
Tax law
Tax bracket
Flat tax
Tax threshold
Exemption
Credit
Deduction
Tax shift
Tax cut
Tax holiday
Tax amnesty
Tax advantage
Tax incentive
Tax reform
Tax harmonization
Tax competition
Tax withholding
Double taxation
Representation
Unions
Medical savings account
Economics
General Theory
Price effect
Excess burden
Tax incidence
Laffer curve
Optimal tax
Theories
Optimal capital income taxation
Distribution of Tax
Tax rate
Flat
Progressive
Regressive
Proportional
Collection
Revenue service
Revenue stamp
Tax assessment
Taxable income
Tax lien
Tax refund
Tax shield
Tax residence
Tax preparation
Tax investigation
Tax shelter
Tax collector
Private tax collection
Tax farming
Noncompliance
General
Tax avoidance
Repatriation tax avoidance
Tax evasion
Tax resistance
Tax shelter
Debtors' prison
Smuggling
Black market
Unreported employment
Corporate
Tax inversion
Transfer mispricing
Base erosion and profit shifting (BEPS)
Double Irish
Dutch Sandwich
Single Malt
CAIA
Locations
Tax havens
Corporate havens
Offshore financial centres (OFCs)
Offshore magic circle
Conduit and sink OFCs
Financial centres
Financial Secrecy Index
Major examples
Ireland as a tax haven
Ireland v. Commission
Leprechaun economics
Liechtenstein tax affair
Luxembourg Leaks
Offshore Leaks
Paradise Papers
Panama Papers
Swiss Leaks
United States as a tax haven
Panama as a tax haven
Types
Direct
Indirect
Per unit
Ad valorem
Aviation
Airport improvement
Landing
Solidarity
Capital gains
Expatriation
Consumption
Departure
Hotel
Sales
Stamp
Television
Tourist
Value-added
Dividend
Environmental tax
Carbon
Eco-tariff
Landfill
Natural resources consumption
Severance
Steering
Stumpage
Excise
Alcohol
Cigarette
Fat
Meat
Sin
Sugary drink
Tobacco
General
Georgist
Gift
Gross receipts
Hypothecated
Income
Inheritance (estate)
Land value
Luxury
Payroll
Pigouvian
Property
Resource rent
Single
Surtax
Turnover
Use
User charge/fee
Congestion
Fuel
Road/GNSS
Toll
Vehicle miles traveled
Corporate profit
Excess profits
Windfall
Negative (income)
Wealth
International
Financial transaction tax
Currency transaction tax
European Union Common Consolidated Corporate Tax Base (CCCTB)
Global minimum corporate tax rate
Tobin tax
Spahn tax
Tax equalization
Tax treaty
Exchange of Information
Permanent establishment
Transfer pricing
European Union FTT
Foreign revenue rule
Trade
Custom
Duty
Tariff
Import
Export
Tariff war
Free trade
Free-trade zone
Trade agreement
ATA Carnet
Research
Academic
Mihir A. Desai
Dhammika Dharmapala
James R. Hines Jr.
Ronen Palan
Joel Slemrod
Gabriel Zucman
Advocacy groups
Institute on Taxation and Economic Policy (ITEP)
Oxfam (UK)
Tax Foundation (US)
Tax Justice Network (TJN)
Tax Policy Center (US)
Religious
Church tax
Eight per thousand
Teind
Tithe
Fiscus Judaicus
Leibzoll
Temple tax
Tolerance tax
Jizya
Kharaj
Khums
Nisab
Zakat
By country
All Countries
List of countries by tax rates
Tax revenue to GDP ratio
Tax rates in Europe
Individual Countries
Albania
Algeria
Argentina
Armenia
Australia
Azerbaijan
Bangladesh
Bhutan
Brazil
Bulgaria
BVI
Canada
China
Colombia
Croatia
Denmark
Finland
France
Germany
Greece
Hong Kong
Iceland
India
Indonesia
Iran
Ireland
Israel
Italy
Japan
Kazakhstan
Lithuania
Malta
Morocco
Namibia
Netherlands
New Zealand
Norway
Pakistan
Palestine
Peru
Philippines
Poland
Portugal
Russia
South Africa
Sri Lanka
Sweden
Switzerland
Taiwan
Tanzania
United Arab Emirates
United Kingdom
United States
Uruguay
Business portal
Money portal
v
t
e
Tax equalization is a policy applied by some international companies under which employees who are hired in one country and later accept a (temporary) assignment in another country do not have their total after-tax ("take-home") compensation changed depending on the tax regimes of the country they move to. If the employee is assigned to a country with lower taxes, the company takes the savings. On the other hand, if they move to a country with higher taxation, the company pays the excess. Either way, under a tax equalization policy, the after-tax compensation received by the employee is same. The purpose of such policies is to help companies fulfill international staffing needs without employees being incentivized or disincentivized from accepting particular assignments due to tax differences between countries.
A similar policy which only benefits the employee (reducing taxes if working abroad results in higher taxes, but not raising them if working abroad results in lower taxes), then it is referred to as a tax protection policy.
then undertakes tax reconciliation at the end of the year. TaxEqualization, Tax Advice by Tim Lenneman, CPA [1], What is taxequalization by Andrew Bailey...
records Factor price equalizationEqualization payments Equalization pool Property taxequalization Risk equalizationTaxequalization of wages across countries...
Equalization is a step in property taxation to bring a uniformity to tax assessment levels across different geographical areas or classes of properties...
federal transfers, including $23.96 billion in equalization payments in 6 provinces. The equalization program is one significant example of transfer payments...
alphabetically, with total tax revenue as a percentage of gross domestic product (GDP) for the listed countries. The tax percentage for each country...
been the assessment and collection of customs duties, which is a tariff or tax on the importation or, at times, exportation of goods. Commercial goods not...
resources are transferred between local authorities. Equalization is achieved by evening out differences in tax bases and structural conditions (age, geographical...
types of taxes: corporate tax, individual income tax, and sales tax, including VAT and GST and capital gains tax, but does not list wealth tax or inheritance...
Tax evasion is an illegal attempt to defeat the imposition of taxes by individuals, corporations, trusts, and others. Tax evasion often entails the deliberate...
Tax Ordinance 2001 (for direct taxes) and Sales Tax Act 1990 (for indirect taxes) and administered by Federal Board of Revenue (FBR). The Income Tax Act...
the principal taxes are Customs duties, Value-Added-Tax (VAT), supplementary duty, income tax and corporation tax. The history of income tax in Bangladesh...
Fonseca shell corporations were used for illegal purposes, including fraud, tax evasion, and evading international sanctions. "John Doe", the whistleblower...
of Equalization and the State Controller, which administered all tax programs. In 1929, the state legislature created the office of the Franchise Tax Commissioner...
A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue...
potential tax rates around Europe for certain income brackets. It is focused on three types of taxes: corporate, individual, and value added taxes (VAT)....
An ad valorem tax (Latin for "according to value") is a tax whose amount is based on the value of a transaction or of a property. It is typically imposed...
equalize the provinces' "fiscal capacity"—their ability to generate tax revenues. In 2009–2010, six provinces received $14.2 billion in equalization payments...
"Chapter 2: Imposition and rate of sales tax". Sales and Use Tax Law. California State Board of Equalization. 2011. Archived from the original on July...
of tax burden to non-citizens or non-residents). The tourist industry typically campaigns against the taxes. It is separate from value-added tax and...
Interest EqualizationTax was a domestic tax measure implemented by U.S. President John F. Kennedy in July 1963. It was meant to make it less profitable...
of sales taxes levied. These are : Provincial sales taxes (PST), levied by the provinces. Goods and services tax (GST)/harmonized sales tax (HST), a value-added...
The California State Board of Equalization (BOE) is a public agency charged with tax administration and fee collection in the state of California in the...
A corporate tax, also called corporation tax or company tax, is a type of direct tax levied on the income or capital of corporations and other similar...
California Bd. of Equalization, 493 U.S. 378 (1990)". Legal Information Institute. Cornell Law School. Retrieved July 4, 2021. "Tax Exemptions of Religious...
A capital gains tax (CGT) is the tax on profits realized on the sale of a non-inventory asset. The most common capital gains are realized from the sale...
The income tax threshold is the income level at which a person begins paying income taxes. The income tax threshold equates to the: Personal allowance...
upon it. It is also known as a location value tax, a point valuation tax, a site valuation tax, split rate tax, or a site-value rating. Some economists favor...
Income taxes are the most significant form of taxation in Australia, and collected by the federal government through the Australian Taxation Office. Australian...
A fat tax is a tax or surcharge that is placed upon fattening food, beverages or on overweight individuals. It is considered an example of Pigovian taxation...
Global Information
