U.S. Residual Tax and the Impact on Global Mobility Programs [Download]

    May 08, 2019 @ 09:51 AM / by Jeremy Piccoli

    The White House on a beautiful summer day, Washington, DC.

    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.


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    Learn about:

    • 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


    Download White Paper


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    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]



    About AIRINC

    We help our clients address expatriate compensation and mobility issues in a complex global environment through advisory services, data services, and technology solutions, while providing our employees with a culture of teamwork, global knowledge, career growth, and interesting solutions to challenging problems.

    We understand that people make an organization successful. We empower companies to deploy global talent by leveraging high quality-data, decision-making tools, and thought-leading advice. Our industry expertise, solutions, and consultative approach enable us to partner with clients to deliver value. Learn more by clicking here.


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    This post was collaboratively written by Jeremy Piccoli and Pat Jurgens


    Topics: International Tax, Insights and Experience, Tax, International Tax Summaries, International Tax Guide, Employee Experience, Residual Tax, Double Tax Relief

    Jeremy Piccoli

    Written by Jeremy Piccoli

    Jeremy joined AIRINC in the fall of 2012 and is responsible for managing AIRINC’s International Tax Guide and tax calculator products, as well as consulting with clients. Prior to joining AIRINC, Jeremy spent more than 6 years with PricewaterhouseCoopers’ International Assignment Services practices in Hartford and Boston, providing tax compliance and consulting services to multinational companies and their expatriate population. He received his B.S. with a concentration in Accounting and a Master of Science in Accounting from the University of Connecticut. Jeremy is an Enrolled Agent, a federally licensed tax practitioner who specializes in taxation.