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The global taxation feature of the US code is a double taxation on income, as you typically pay taxes in the foreign jurisdiction as well (There are tax treatie
by ckinnan 18y ago
The global taxation feature of the US code is a double taxation on income, as you typically pay taxes in the foreign jurisdiction as well (There are tax treaties that reduce this double taxation in many jurisdictions, but only to a certain amount). It also applies to US businesses that operate globally and is a major reason so many multinationals move their headquarters offshore. The US, I believe, is one of only two countries in the world that taxes citizens globally, the other being Israel.
- xiaoma 18y agoThat's definitely not the case anymore. Canadians have to pay taxes on world-wide income unless they can demonstrate they have "severed ties" with their Canadian residence. Working abroad for a year or two in an expat job doesn't cut it. More and more countries are moving towards world-wide taxation, unfortunately.