Attract talent: You want a great workforce, and you need to attract the best talent and expertise. Global competition is stiff for certain skills. Tax-free allowances are a plus.
Low administrative expense: You can offer a real benefit to potential employees by compensating them for extra expenses they have when they move out of their home country to work—without heavy administrative procedures for you. It’s a win-win. Some of those expenses can be free of tax for them. See below for examples of extraterritorial expenses.