A local national is defined as an employee who:

• A. From Another Country Working in the U.S.
• B. From the U.S. Working in a Foreign Company
• C. From a Foreign Company Working in the U.S.
• D. From a Foreign Country Working in His or Her Home Country Location

Answer: (D)

Local nationals are employees who are a national of the country where they work. In practical terms, they’re hired and paid in the local payroll and taxed as residents of that country. The scenario that fits this definition is someone who is from a foreign country but works in his or her home country location—meaning they are working in the country that is their own homeland. This makes them a local national to that country.

The other situations describe individuals working outside their home country (expatriates or foreign workers) or working for a foreign company in the host country, which do not fit the local national concept.