Originally Posted by
PastV1
Redeye,
That was my point. They give you another 6k to cover taxes on your extra 12k then your income goes up 6k then they give you another 30% of 6k ($1800) to cover the taxes on that now you owe taxes on 1800 more then they pay you....well, you get the picture....
Past....
No, as I understand it, the company won't give YOU or I anything.
You will give your tax return paperwork to Price Waterhouse Cooper ( or whoever they decide on). Your overall tax return will be prepared and any excess taxes liability will be paid by FedEx (you won't receive it but it will be paid on your behalf) . If say you live in Kansas today and decide to take an FDA slot, you shouldn't pay anymore total taxes based in HKG or CDG as you would if you had remained in Kansas...............
The catch is you might be earning more income over there because of the possibility of an additional $2700/month and a $10,000 cash bonus. (notice I didn't say making more, just earning more on paper).
Anyway if the Company pays the US and French/HKG government $6000 (or whatever $ amount) on your behalf, that will be included in your W-2 gross income and YOU will pay taxes on that 6000 the company paid on your behalf (not the company).
You and I might be sdaying the same thing...........there is nothing simple/straight forward about taxes.
Tax equalization form FedEx or any Corp wasn't intneded to be a Financial Gain. It is intended to reduce any additional Tax burden incurred by living and working abroad. Some of us will benefit more than others depending on individual situations.