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Tax Equalisation

Expert insight to help employers draft, implement and manage tax equalisation policies.

Tax Equalisation (taxEQ) 

To ensure your employees are neither ‘better off’ or ‘worse off’ when going on an international secondment, you can implement a Tax Equalisation (taxEQ) policy or arrangement.

The idea of such a policy is to ensure that your employees have approximately the same net or ‘take home’ income which they had in their home country before the secondment.

As part of the arrangement, you commit to providing support to the employee and agree to help fund some or all of the taxes incurred by them during the overseas assignment.

Typically, this involves an agreement entitling the employee to specified net cash earnings and non-cash benefits.

As the employer, you take responsibility for the assignment-related tax to keep your employees in a cost neutral position.

It is common to provide a professional adviser or in-house specialist to help with the individual’s assignment-related tax affairs, whilst administering the taxEQ policy on their behalf.

This can be a complex and time-consuming process.

Our people, your partners

Our team of expert advisers are experienced in helping employers to draft, implement and manage their tax equalisation policies so that you can concentrate on matters of strategic importance to your business.

Working closely with you, we will help you to decide on the most efficient approach to align your business and commercial needs.

How we can help with your tax equalisation needs

Winner of Best International and Expatriate Tax Team at the industry-leading Taxation Awards, we are widely considered to be leaders in the field of expatriate tax.

We can assist your business in the following tax equalisation areas:

  • Drafting tax equalisation policies
  • Implementing and managing the policy
  • Delivering employee engagement briefings to explain the policy
  • Preparing calculations related to the policy (hypothetical tax calculations, tax equalisation reconciliation calculation)
  • Dispute resolution
  • Existing policy health check for effectiveness and suitability
  • Expert Witness support
Winner of Best International and Expatriate Tax Team at the industry-leading Taxation Awards.

Our client stories

Advising a global fintech client on stock option awards for senior executives working in different countries

Saving over £1 million in employer National Insurance contributions in relation to a client’s exercise of shares by their German-based CEO

Advising a fast-growth start-up of the UK and international Income Tax, capital gains and withholding treatment of shares in a pre-IPO private company

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