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It'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 quit
by doktrin 13y ago
It'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.