| Topic Name: |
Comp & Taxes |
| Message Name: |
US EXPAT TAXATION |
| Date Posted: |
07/21/2000 |
| In Reply To: |
Can anyone out there give me the basic skinny on the taxes an American ex-pat would pay, say, in Hong Kong?
As I'm aware you'd pay the 15% local flat, and then pay to the U.S. the remainder to take you up to your ordinary domestic tax bracket. So there's no real tax benefit to working abroad. Correct? |
| Message: |
The issues in expat tax planning are complex and a lot turns on the individual facts. Are you on your own (ie personally responsible for Hong Kong and U.S taxes), or are you being transferred by a company? Basically, you may be able to exclude $74000 from U.S taxable income if you meet the relevant tests( ie residence abroad for 1 whole calendar year or 330 days in a 12 month period. Also, you may be able to claim a credit against U.S tax for the taxes paid in Hong Kong. If your U.S employer is responsible for taxes then the company will "tax equalize" you to ensure you do not get a tax windfall. I hope this helps. If you need specific advice i suggest you give more details on this board and i will try to help.
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