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Americans can't declare themselves as non-residents that don't need to pay tax? Canadians who work abroad can do that. And then if they ever move back home, t
by PakG1 8y ago
Americans can't declare themselves as non-residents that don't need to pay tax? Canadians who work abroad can do that. And then if they ever move back home, they just have to declare residency again. It's a bit of a process to do both, of course, but it's definitely there. Without this, Canadians who work abroad also get taxed on their global income. Just if you're lucky to work in a country with which Canada has a tax treaty, you don't get double-taxed. You just pay for taxes for the difference on what you would need to have paid in Canada for the same income level if your current country has a lower tax rate.
- CydeWeys 8y agoAmerican citizens pay US taxes, full stop. As the comment you're replying to says, this is very unusual among countries. Canada doesn't work the same way. Although you don't get double-taxed, so if you're living anywhere where the tax rate is higher than in the US you pay nothing to the US. If you're living in a tax haven like the Bahamas then you do pay a substantial amount. Even when you're not paying you have to continue filing US tax forms, though, which is annoying and complicated in international tax situations.
- pseudolus 8y agoThe US has tax treaties with pretty much every country that's a viable destination. [0] Double taxation is not really much of an issue. What is an issue, however, is that there still exists the requirement to file an annual return which can be a pretty expensive proposition over the years, especially if a person is retaining an accountant to handle things (as they should given the complexities of US non-resident citizen returns). [0]: https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z https://www.irs.gov/businesses/international-businesses/unit...