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A shadow payroll can lower your company’s risks when you send an employee abroad. Find out why in this short video.

How to develop and implement a tax equalisation policy

If your company sends staff abroad, there are advantages to having a tax equalisation policy. It will offset employee tax burdens associated with overseas assignments while ensuring employer tax compliance in home and host countries. Many of these policies are shaped more by company philosophy than legal requirements. But making the right decisions about what to include in the policy is critical to achieving a balance between attracting and retaining top talent, maximising tax advantages, and streamlining expatriate tax reimbursement processes and payroll administration.

In my last post, I described a typical scenario involving a US company sending a US national to Germany on an assignment lasting between one and two years. I also gave an overview of German tax-residency laws under the US-Germany double tax treaty. In part two of this two-part series, I’ll discuss drafting an expat assignment letter and how to ensure that your company fulfills both its US and German tax obligations during your expat’s stay in Germany.