US taxation while living in a foreign currency
#1
Three Wheelin'
Thread Starter
US taxation while living in a foreign currency
Hi Guys,
I've been asked to think about how I would feel about working in Dubai or Singapore. The opportunity I'm being given is really great so I am considering it. The advantage to living in Dubai is that they pay 0% income tax. This is a financial advantage for a lot of people however I have heard that being a US citizen, I won't escape paying US taxes in that I would pay the difference in what I pay in the country I reside in and what I would have paid in the US.
Does anyone know much about this subject? Are there any ways around this?
Thanks
I've been asked to think about how I would feel about working in Dubai or Singapore. The opportunity I'm being given is really great so I am considering it. The advantage to living in Dubai is that they pay 0% income tax. This is a financial advantage for a lot of people however I have heard that being a US citizen, I won't escape paying US taxes in that I would pay the difference in what I pay in the country I reside in and what I would have paid in the US.
Does anyone know much about this subject? Are there any ways around this?
Thanks
#2
Adventurist.
Yes, since you are a US citizen you must report your earnings to the IRS if you are working for a US firm. There is no legal way around this.
For more info: http://www.irs.gov/faqs/faq13-7.html
Only alternative is if your firm, you, etc. are employed by or under contract by the US government to do your job overseas or in a combat zone. In that case, up to a certain amount is tax-free.
For more info: http://www.irs.gov/faqs/faq13-7.html
Only alternative is if your firm, you, etc. are employed by or under contract by the US government to do your job overseas or in a combat zone. In that case, up to a certain amount is tax-free.
#3
Go Giants
Its supposed to be no better or worse off as if you were in the US. Your host company pays your taxes in the country you are in and technically you pay the US tax.
#4
Outnumbered at home
^^^ actually I thought you paid taxes as normal but if you pay less than you would have paid uncle Sam you pay the difference.
I work for the US gov so I pay taxes as normal. Of course a lot of the contractors here pay no taxes on 85k of their salaries. After that they pay taxes.
I work for the US gov so I pay taxes as normal. Of course a lot of the contractors here pay no taxes on 85k of their salaries. After that they pay taxes.
#5
Go Giants
Originally Posted by 95gt
^^^ actually I thought you paid taxes as normal but if you pay less than you would have paid uncle Sam you pay the difference.
I work for the US gov so I pay taxes as normal. Of course a lot of the contractors here pay no taxes on 85k of their salaries. After that they pay taxes.
I work for the US gov so I pay taxes as normal. Of course a lot of the contractors here pay no taxes on 85k of their salaries. After that they pay taxes.
#6
Three Wheelin'
Thread Starter
Thanks guys. My company is incorporated in the UK but have operations in the US. I guess I have to talk to my accountant/HR about this once it starts becoming more definitive. I have heard that a lot of companies pick up the difference but that would make it very expensive for them to move me versus giving someone else the position.
#7
dɐɹɔ ǝɥʇ ʇɐɥʍ
The only way around this is to Expatraite(often reffered to as an Expat), and even then this process takes ten years. As for working in Dubai I would recommend against it unless your of arabic decent, while the area is growing rapidly and probably the most expensive place to live in the world, there are seldom any good openings for those who are not arabic. When you become an Expat you need to set up residence in a new country and ultimately our paying taxes in both countries for at least a few years. This is becoming a more common practice with the ultra wealthy, of course you can never live in the USA again, but you can spend up to 185 days here - I guess it depends how much you plan to make and if you plan to come back. Otherwise your paying taxes in this country as long as you live.
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