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An American individual living in France and earning income in France not only has to pay France but also the US.
Yet an American company doing business in France and earning income in France is sheltered from having to pay US tax.
An American individual living in France and earning income in France not only has to pay France but also the US.
Yet an American company doing business in France and earning income in France is sheltered from having to pay US tax.
What is wrong with this picture ?
The American way of levying taxes is fairly unusual. Most countries base taxation on residency rather than citizenship. The US bases it on citizenship no matter where you live.
In practice, you will not pay tax twice. Most countries have double taxation treaties with the US so that, even if you are above the minimum threshold for paying US tax, because foreign taxes are often higher than US ones then that will negate any US tax liability.
Reading the article, the main issue seems to be the administrative burden, confusing rules, intrusive practices and especially the penalties associated with that. Add to that the difficulty of persuading a spouse who is not a US citizen to declare their accounts to the IRS and you have a problem looking for a place to happen. It is a great example of big government run amok.
And, as the IRS puts the squeeze on foreign financial institutions, it gets even harder for US citizens overseas. Foreign banks increasingly want nothing to do with US accounts because of the potential hassle.
The American way of levying taxes is fairly unusual. Most countries base taxation on residency rather than citizenship. The US bases it on citizenship no matter where you live.
In practice, you will not pay tax twice. Most countries have double taxation treaties with the US so that, even if you are above the minimum threshold for paying US tax, because foreign taxes are often higher than US ones then that will negate any US tax liability.
Reading the article, the main issue seems to be the administrative burden, confusing rules, intrusive practices and especially the penalties associated with that. Add to that the difficulty of persuading a spouse who is not a US citizen to declare their accounts to the IRS and you have a problem looking for a place to happen. It is a great example of big government run amok.
And, as the IRS puts the squeeze on foreign financial institutions, it gets even harder for US citizens overseas. Foreign banks increasingly want nothing to do with US accounts because of the potential hassle.
And notice..it's about citizens, not corporations. The IRS could get a heck of a lot more money with a lot less work if they did the same to even just 10 multi-nationals.
Just goes to show how desperate the US is to get revenue.
And notice..it's about citizens, not corporations. The IRS could get a heck of a lot more money with a lot less work if they did the same to even just 10 multi-nationals.
Just goes to show how desperate the US is to get revenue.
Yup ..... but the IRS is not stupid. Why go after a corporation who can fight back with an army of lawyers when it is so much easier to go after ordinary citizens.
Yup ..... but the IRS is not stupid. Why go after a corporation who can fight back with an army of lawyers when it is so much easier to go after ordinary citizens.
That's true. I didn't think of it from that angle.
I don't see this as nayhting different tha we see of people moving withi the US to lower cost of living areas especailly retired people who can do so. Its likely to conitnue just has it did with compnaies seekig more competitive cost areas .
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