Managing the tax implications for employees working internationally is a complex but essential part of a Global Mobility Program. Organizations typically work with tax consultants or in-house experts to navigate the dual-tax obligations that may arise in the home and host countries. The common approach is tax equalization, where the company ensures that the employee's tax burden does not exceed what they would have paid in their home country.
This involves calculating hypothetical taxes and actual taxes, then adjusting the difference. Companies also handle tax compliance by assisting with or completely managing the filing of tax returns in both countries to avoid legal pitfalls and ensure that all regulations are adhered to efficiently.