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.?

1 reply
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:

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…