SHADOW PAYSLIPS AND TAX EQUALIZATION (HYPO)
The concept of shadow payroll allows employees to work in a foreign country and to get paid by their home or host country. However, the employer always remains responsible for the payroll tax compliance in the country hosting the employee.
Shadow payroll allows assisting with an expat employee’s host-country compliance, reporting and tax obligations. At the same time, the worker is under assignment in the host country because the employee remains on a home-country payroll. The host country payroll will “shadow” what is reported in the home country payslip. Even the employee will not receive any compensation from the host country.
About hypothetical Tax (Hypo), the employer could be offsetting any tax difference for the employee, applicable when the employee is hosting a Country tax resident. This way, working abroad becomes tax neutral for the employee.
LDP Shadow Payslips and Tax Equalization (Hypo) Services
- Shadow payslip
- Seconded tax calculation
- Seconded tax form application