1 of 2 Countries in the World!
The United States has the ignominious distinction of being one of only two countries in the world (along with Eritrea) that implements citizenship-based worldwide individual taxation.
For U.S. citizens (and Green Card holders) living and working within the United States, the impact is relatively low as their earned income is not being taxed by foreign countries. However, for U.S. citizens living and working abroad, the citizenship-based taxation creates a compliance burden, potential for double taxation, and a potentially smaller cost savings while working in no- or low-tax countries.
In the context of global mobility, U.S. citizens are a notorious demographic that requires additional consideration and attention due to the unique and burdensome U.S. tax system (which includes reporting requirements of foreign bank accounts and assets).
As frequent business travelers and short-term assignments gain popularity, and as governments pursue additional tax revenue, home country tax residency has become a larger issue for global mobility professionals.
Where can you make the most money and keep it? [Infographic]
- Home country residency and ongoing tax exposure
- Double tax relief in general (FTC/EWP)
- The most common mechanisms for relief
- U.S.– Specific Rules
- Products that consider U.S. residual tax
- Case Studies: Low tax at host vs. high tax at host
Register for our upcoming webinar series to learn more about international mobility taxation and much, much more!
3-Part Mobility Tax Webinar Series brought to you by GTN and AIRINC [webinar]
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This post was collaboratively written by Jeremy Piccoli and Pat Jurgens.