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    ExpatInfoDesk
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    Posted by Guest , 1 reply

    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.?

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    George

    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
    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…

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