Tax Equalisation: Reasons for a new approach | KPMG | AU
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Tax Equalisation: Reasons for a new approach

Tax Equalisation: Reasons for a new approach

Results from KPMG Australia’s Tax Equalisation Policy Survey highlight four reasons why your organisation’s TEQ policy might be due for a rethink.

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Tax equalisation (TEQ) – the practice of holding international assignees to the tax rates applicable in their home country whilst working overseas – has long been a staple of companies with a globally mobile workforce. However, trends show that companies are limiting, or abandoning the practice.

In September 2017, KPMG launched Australia’s Tax Equalisation Policy Survey. The results of that survey showed that while 74 percent of companies have a TEQ policy, and over 60 percent believe that TEQ policies are on their way out.

A key issue is that many organisations have a ‘set-and-forget’ approach to TEQ, leading to cost inefficiencies and impacting the success of international assignee programs. Drawing from the survey findings, we have developed the following report highlighting the four reasons why your organisation’s TEQ policy might be due for a rethink.

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