Addressing expatriate tax issues

How Canadian companies deal with the tricky issue of income tax for expatriates
By Lynne Molnar
|Canadian HR Reporter|Last Updated: 03/14/2006

If there’s anything universal in the world, it’s taxes. Some countries have higher taxes, some lower. Some have simple tax schemes while others are extremely sophisticated. Therefore, it’s not surprising that one of the most complex facets of an international assignment is tax treatment on income earned by employees, whether they’re Canadians sent abroad or foreign workers brought in to Canada.

What are the potential tax implications of an assignment from Canada to, say, Singapore or vice-versa? What tax approach works best — does the employer handle all the details related to home and host tax or is everything left to the worker?

In its 2005