Local Government Tax is a country-specific tax that Outstaffer incurs on your behalf and recovers at cost. Examples:
Thailand: 7% VAT
Philippines: 1% local government tax on revenue
The line item shows the actual tax incurred for your employee's payroll for the period. We don't add anything on top — it's a pure pass-through.
The exact tax depends on the country where your employee is based. Your dedicated HR Manager can walk you through the specific tax treatment for any country.