An advantage of this method is that no year-end reconciliation is needed as the net pay is guaranteed beforehand. Pre-Assignment Planning Tax protection or equalisation in a high tax environment can be very expensive for the employer. Planning an assignment, therefore, is crucial to reducing the associated costs as far as possible. This may require consideration of the number of days spent in the foreign country, and who should be the employer or who should bear the employee's costs. Qualifying as a non-resident in years of arrival and departure, and consequently being taxed at a lower rate or not taxed at all.
Timing here can be crucial.
Maximising advantages of graduated tax rates. Delivering related allowances as cost effectively as possible. For example, home country social security costs may be saved if a portion of the allowance is paid by the employer as a direct payment to a third party for services such as housing. This is in contrast to providing a cash allowance to the employee, which would be subject to social security contributions. Using opportunities such as separate employment arrangements and special premiums for work outside the foreign country.