And to add to that, tax equalization is yet another taxable benefit which makes it cost even MORE to the company providing it. Ultimately it is less compensation you receive and a larger burden on your employer for employing you as an American.GSM8 wrote: I was moved to Singapore by an international company, but it is nowadays less common to provide tax equalization
Indeed, when I used to work for a big MNC at the UK headquarters, it was observed that for the equivalent total cost of a youngish US expatriate (maybe 5 years experience), you could get an Oz/Kiwi/Safr with 15-20 years experience, after considering all the tax equalization, ongoing healthcare payments in US, etc. Was a clear headwind for receiving US expats.zzm9980 wrote:And to add to that, tax equalization is yet another taxable benefit which makes it cost even MORE to the company providing it. Ultimately it is less compensation you receive and a larger burden on your employer for employing you as an American.GSM8 wrote: I was moved to Singapore by an international company, but it is nowadays less common to provide tax equalization
I now work for the worlds 3rd or 5th largest company (I can't keep track of it). HR's stated position on expat benefits is 'there should be NO financial benefit to working overseas'. What this translates to is that expats are levied hypo tax at their home country tax rate (Canadians, Australians etc are really annoyed) and their salary is negotiated and paid in their home currency (i.e. AUD, CND, USD) at the rate commensurate for their skill level in their home country. They are then 'topped' up with a local living allowance depending on the hardship/economic rating of the country and of course some housing and vehicle allowances etc. As you can imagine it's not a popular system! I, fortunately, fell through the cracks as a Singapore PR - I pay tax in Singapore of course, I'm paid in SGD and my salary level is a little high for a local salary but has been left alone. I predict - because everyone seems to follow this companies trends - is that this will become more common.Beeroclock wrote:Indeed, when I used to work for a big MNC at the UK headquarters, it was observed that for the equivalent total cost of a youngish US expatriate (maybe 5 years experience), you could get an Oz/Kiwi/Safr with 15-20 years experience, after considering all the tax equalization, ongoing healthcare payments in US, etc. Was a clear headwind for receiving US expats.zzm9980 wrote:And to add to that, tax equalization is yet another taxable benefit which makes it cost even MORE to the company providing it. Ultimately it is less compensation you receive and a larger burden on your employer for employing you as an American.GSM8 wrote: I was moved to Singapore by an international company, but it is nowadays less common to provide tax equalization
Ultimately, US still seems a very favourable citizenship for many people to retain despite these constraints.
Lol geniussundaymorningstaple wrote:Nope, no mailing list, and I can guarantee you all the Americans on this particular board are well informed and tend to keep that way regarding the US tax laws. In fact two of the four moderators ARE Americans. One from each political flavor. So we tend to hash out a lot here. But thank you for asking.
I guess my biggest question is why are you posting from an Indian ISP but claiming you are in Singapore?![]()
General IP Information
IP: 59.93.51.166
Decimal: 995963814
Hostname: 59.93.51.166
ISP: BSNL
Organization: BSNL
Services: None detected
Type: Broadband
Assignment: Dynamic IP
Blacklist:
Geolocation Information
Country: India in flag
State/Region: Andhra Pradesh
City: Hyderabad
Methinks the fish smell funny in your barrel.
Moderator
Eh, not *every* post like this is a scam. I've come from similar IPs more than a few times while traveling for work. And I assure you I'm 100% ang moh American.ohmz52 wrote:Lol geniussundaymorningstaple wrote:Nope, no mailing list, and I can guarantee you all the Americans on this particular board are well informed and tend to keep that way regarding the US tax laws. In fact two of the four moderators ARE Americans. One from each political flavor. So we tend to hash out a lot here. But thank you for asking.
I guess my biggest question is why are you posting from an Indian ISP but claiming you are in Singapore?![]()
General IP Information
IP: 59.93.51.166
Decimal: 995963814
Hostname: 59.93.51.166
ISP: BSNL
Organization: BSNL
Services: None detected
Type: Broadband
Assignment: Dynamic IP
Blacklist:
Geolocation Information
Country: India in flag
State/Region: Andhra Pradesh
City: Hyderabad
Methinks the fish smell funny in your barrel.
Moderator
I thought that was already the norm, I was on that approach through 2003-9. The hypo tax is a definite downside here, but personally I found the allowances made up for it a lot. Especially for those expats with big families, having International School fees, return home flights etc etc. Maybe companies have been trimming back on these allowances though.PNGMK wrote:I now work for the worlds 3rd or 5th largest company (I can't keep track of it). HR's stated position on expat benefits is 'there should be NO financial benefit to working overseas'. What this translates to is that expats are levied hypo tax at their home country tax rate (Canadians, Australians etc are really annoyed) and their salary is negotiated and paid in their home currency (i.e. AUD, CND, USD) at the rate commensurate for their skill level in their home country. They are then 'topped' up with a local living allowance depending on the hardship/economic rating of the country and of course some housing and vehicle allowances etc. As you can imagine it's not a popular system! I, fortunately, fell through the cracks as a Singapore PR - I pay tax in Singapore of course, I'm paid in SGD and my salary level is a little high for a local salary but has been left alone. I predict - because everyone seems to follow this companies trends - is that this will become more common.Beeroclock wrote:Indeed, when I used to work for a big MNC at the UK headquarters, it was observed that for the equivalent total cost of a youngish US expatriate (maybe 5 years experience), you could get an Oz/Kiwi/Safr with 15-20 years experience, after considering all the tax equalization, ongoing healthcare payments in US, etc. Was a clear headwind for receiving US expats.zzm9980 wrote: And to add to that, tax equalization is yet another taxable benefit which makes it cost even MORE to the company providing it. Ultimately it is less compensation you receive and a larger burden on your employer for employing you as an American.
Ultimately, US still seems a very favourable citizenship for many people to retain despite these constraints.
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