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Tax issue – Company Contribution Plan
Today, pick up one of the most frequent topic at international company, CCP.
CCP is abbreviation for Company Contribution Plan, and this is used for the company benefit to expat. From company side, this is treated as “donation” so takes tax advantage. On the other hand, from expat point of view, this CCP is not regarded as withholding tax, so has merit to use this.
However, CCP should be written in contract clearly and this amount should not be extremely high compared with other school’s. Otherwise, this might be regarded as withholding tax to expat.