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SoFA- Related Tax Liability and Fines

Updated: Oct 10, 2022

A large government contractor working with the US military was paying employees through the U.S. but the company was not paying foreign taxes on the income the employees earned while working in the country.

Unfortunately, because the company did not have the proper understanding of what qualified individuals as SoFA exempt, they had to pay a large fine. PZI worked with the company and vendors to get the employees on board with mitigating the penalties.

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