China and Tax Equalization
#31
Gets Weekends Off
Thread Starter
Joined APC: Oct 2009
Position: 777 Capt
Posts: 129
Please list those companies and how they compute their benefits.
Thanks
#34
Gets Weekends Off
Joined APC: Apr 2009
Position: Mad Dog Capt
Posts: 226
I mentioned some high points of our package to a corporate CPA/VP who is now on his 3rd int'l assignment, currently in Zurich. I know him well, and he was honest and upfront.
He was shocked.
Standard expat package includes $20,000/per child. Varies by country, but is designed to be enough to cover the int'l English-speaking schools. COLA allowance is boosted every year, based on the CPI equivalent. Housing allowance was a formula, based on prior residence square footage, that provided housing at the same personal cost as the expats prior rent/mortgage. No punitive fees, no utility bills faxed to finance, no quasi-divorces so the company doesn't try to recoup $30,000 in FDA payments if the family moves back/doesn't move to HKG. (that has already happened here. Unfortunately.)
He shook his head when the term "tax equalization" came up. Said it's an option that some companies use; driven in some instances by the respective government (could be the case here?), and as a cost reducer, depending on the countries involved.
Ideally, he stated we wanted "tax minimization"--not "equalization", as the benefit to the employee is minimal under the latter. Evidently these are major differences in CPA-speak.
So maybe it's the country, maybe it's the company. I don't know. In any case, equalization is a deal-killer for me personally to bid an FDA. FWIW
#35
Gets Weekends Off
Joined APC: May 2009
Posts: 556
Here's one: Ernst & Young. Financial firm. You might have heard of them.
I mentioned some high points of our package to a corporate CPA/VP who is now on his 3rd int'l assignment, currently in Zurich. I know him well, and he was honest and upfront.
He was shocked.
Standard expat package includes $20,000/per child. Varies by country, but is designed to be enough to cover the int'l English-speaking schools. COLA allowance is boosted every year, based on the CPI equivalent. Housing allowance was a formula, based on prior residence square footage, that provided housing at the same personal cost as the expats prior rent/mortgage. No punitive fees, no utility bills faxed to finance, no quasi-divorces so the company doesn't try to recoup $30,000 in FDA payments if the family moves back/doesn't move to HKG. (that has already happened here. Unfortunately.)
He shook his head when the term "tax equalization" came up. Said it's an option that some companies use; driven in some instances by the respective government (could be the case here?), and as a cost reducer, depending on the countries involved.
Ideally, he stated we wanted "tax minimization"--not "equalization", as the benefit to the employee is minimal under the latter. Evidently these are major differences in CPA-speak.
So maybe it's the country, maybe it's the company. I don't know. In any case, equalization is a deal-killer for me personally to bid an FDA. FWIW
I mentioned some high points of our package to a corporate CPA/VP who is now on his 3rd int'l assignment, currently in Zurich. I know him well, and he was honest and upfront.
He was shocked.
Standard expat package includes $20,000/per child. Varies by country, but is designed to be enough to cover the int'l English-speaking schools. COLA allowance is boosted every year, based on the CPI equivalent. Housing allowance was a formula, based on prior residence square footage, that provided housing at the same personal cost as the expats prior rent/mortgage. No punitive fees, no utility bills faxed to finance, no quasi-divorces so the company doesn't try to recoup $30,000 in FDA payments if the family moves back/doesn't move to HKG. (that has already happened here. Unfortunately.)
He shook his head when the term "tax equalization" came up. Said it's an option that some companies use; driven in some instances by the respective government (could be the case here?), and as a cost reducer, depending on the countries involved.
Ideally, he stated we wanted "tax minimization"--not "equalization", as the benefit to the employee is minimal under the latter. Evidently these are major differences in CPA-speak.
So maybe it's the country, maybe it's the company. I don't know. In any case, equalization is a deal-killer for me personally to bid an FDA. FWIW
So for you, equalization, means less money in your pocket and the money is not enough for you to bid it. Tax immunization or also called tax protection would be GREAT, no downside risk and keep any and all tax benefits.
If we could get that, great, but the current and new LOA simply give us an equal footing as if we still lived stateside. I think the argument of "profiting" by the Corporation has been adequately put to bed.
It is pure economics, tax protection equals more money IN your pocket, tax equalization equals no more money OUT of your pocket.
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