Posted by Guest 29th August 2012 17:26 GMT, 1 replyFilters: USA Tax

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.?

George29th August 2012 17:51 GMT

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:

http://www.expatnetwork.com/Money/Expat-Tax/Tax-Equalisation.cfm
http://us.kpmg.com/microsite/tax/ies/tea/winter2009/article6.asp

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:

http://www.expatinfodesk.com/expat-guide/negotiating-your-contrac…
Post reply

Comment as a guest

Your comment will always be moderated though. Why not register?

Already registered? Sign-in

If you've already got an account with us you can sign-in below.


Please note we reserve the right to moderate all topics and replies posted.

Back to top