4 ms·
It is more that the USA is one of the few countries that taxes on citizenship rather then residency, so this means that if you are living in another country you
by cjh_ 13y ago
It is more that the USA is one of the few countries that taxes on citizenship rather then residency, so this means that if you are living in another country you are still dealing with USA tax laws as well the tax laws of your country of residency.
- doktrin 13y agoIt's worth noting that the US has tax agreements with most developed nations, which in theory limits the dual-taxation burden. In practice, it's allegedly quite a bit of hassle and paperwork and a net expense (regardless of tax agreement).
- mjn 13y agoIf you're doing a lot of convoluted business dealings, I imagine it could be a hassle, but for a regular professional expatriate employee I have not found it complex. I earn a salary; I pay Danish taxes on that salary; I deduct the Danish taxes paid from my U.S. tax obligation as a Foreign Tax Credit; and the net result is negative so I pay no U.S. tax. It would be even easier if I spent less than 35 days/year in the U.S. and qualified for the $95k foreign income exclusion. But even though I don't (I spend ~2 months/yr in the U.S. in an average year), it's still easy enough.
- doktrin 13y agoInteresting. Thanks for sharing your perspective. That's certainly encouraging.
- _lex 13y agoUSA taxes citizenship, as well as residency (both physical and legal). As a non-us person, I paid more taxes than my friends did. As a permanent resident, I still have to pay taxes if I leave the US - even though I'm not a citizen.
- seanmcdirmid 13y agoThe US also taxes residency (if you aren't a citizen and work in the states) just like any other country.