My company are asking me to take an assignment in South Africa. It is likly to be for a couple of years. my base pay will be paid through the usual channels in the US with tax taken at source + FICA & SS. They tell me I will be subject to “tax equalization” is this the same as getting the $95,100 tax exemption for income earned on an assignment outside the US.?
Yes that should be the case as the idea is that you should be no better or worse off from a tax perspective whilst being based abroad. These links should give a better explanation:
You should still make sure you negotiate your contract though to get the best package you can as changing it later can be hard. Have a look in our Expat’s Manual for some tips:
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