Expatriate Payroll Solutions

PaySpace offers local compliance as well as unrivalled built-in automated standard delivered expatriate functionality. The advanced features provide automated multi-country, multi-currency salary and tax processing in both the home and the host country. Automated and instant single or multi-component gross up functionality further enhances concepts around complex tax equalisation scenarios.

Expatriate Feature Highlights

An example of the Expatriate Calculation

PaySpace Expatriate Payroll Solutions covers the requirement for expatriates working in other countries to gross up their earnings by relevant statutory contributions according to currency and contracts offered in their home countries. This allows for simple automated conversion of net home to host earnings. Expatriate tax management reporting offers home country currency specific tax year to date reports, providing expats with an abundance of information to complete personal tax returns.

Image1 :  Input of payroll component amounts are done in home currency and automatically converted to host currency on the real-time payslip

Image2 :  Expatriate PaySlip Example in Home Currency (Pound) 

Image3 :  Expatriate PaySlip Example in Host Currency (Kenyan Shilling)

Expatriate Terminology


An expatriate (often shortened to expat) is a person temporarily or permanently residing, as an immigrant, in a country other than that of their citizenship. From an employee payroll perspective, there are many complexities associated with expats being tied to their home country benefits and salary in one currency and obtaining host country additional benefits and earnings in another currency. Furthermore, the employer is also exposed to obligations of appropriately applying the correct special tax conditions / statutory obligations and filing requirements in both host and home countries.

Tax Equalisation

Tax equalization is a process that ensures that the tax costs incurred by an assignee on an international assignment approximates what the tax costs would have been had he remained at home. The intent of tax equalization is that the assignee neither suffers significant financial hardship nor realizes a financial windfall from the tax consequences of an international assignment. When tax equalization is utilized, the employer bears the responsibility for paying the assignee’s actual home and host country tax costs. In exchange, the assignee pays to the employer a stay-at-home hypothetical tax as determined under the company’s tax equalization policy.

Shadow Payroll

It’s a term used to report compensation data that is actually paid from another country. Shadow payrolls typically exist in all host locations that require payroll tax withholding and in home locations that tax on worldwide income. In cases where tax equalised expatriates have been in country for longer than 183 days, it may be necessary to calculate and pay across statutory taxes to the host country authorities. In these cases the company pays the taxes to host country authorities without necessarily exposing these calculations to the expatriate.

Gross Up

The process of advising a net amount in order to backward calculate a correct inflated gross figure that takes into account relevant statutory taxes, refers to a gross up calculation. This calculation may be necessary across expatriate equalisation principles as well as in deriving an expatriate’s net assignment salary in a host country that incorporates home currency and host applicable statutory rules. A host expatriate payslip would typically include a myriad of gross up calculations ranging from home guaranteed net pay and certain extra assignment gross up allowances and benefits.

Hypothetical Tax

Hypothetical tax is a reduction in salary which estimates the amount of tax that you would have to pay if you had not gone on assignment – theoretical home tax liability on home standard pay. In accordance with tax equalisation principles the employee’s obligation extends to paying the hypothetical tax to the employer while the employer’s obligation would extend to paying home and host country taxes.

Current African Footprint

PaySpace has expanded its cloud-based Payroll & HR offering into 37 African countries offering specific Expatriate Payroll Solutions.  In order to deliver the best possible African Payroll & HR solutions as well as comply with latest legislative changes, strategic relationships have been set up with various partners including world-renowned global accounting firms.  Together with the multi-national specific functionality, PaySpace provides powerful Expatriate Payroll Solutions that assists clients in rolling out into international regions literally overnight.


37 African Countries

PaySpace was developed to operate in a highly secure and operationally efficient manner. Its Expatriate Payroll Solutions was specifically designed to provide multi-country, multi-language Payroll and HR to organisations of all sizes and industry with an unrivalled footprint in 37 African countries. For this reason, PaySpace was also awarded the International Frost & Sullivan 2015 Product Leadership Award.

  • Malawi
  • Mali
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • Reunion
  • Rwanda
  • Saudi Arabia
  • Angola
  • Benin
  • Botswana
  • Burkina Faso
  • Burundi
  • Cameroon
  • Chad
  • Congo
  • Democratic Republic of Congo
  • Equatorial Guinea
  • Eritrea
  • Ethiopia
  • Gabon
  • Ghana
  • Guinea Conakry
  • Ivory Coast
  • Kenya
  • Lesotho
  • Liberia
  • Madagascar
  • Senegal
  • Sierra Leone
  • South Africa
  • Swaziland
  • Tanzania
  • Togo
  • Uganda
  • Zambia
  • Zimbabwe
  • Seychelles
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