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I received a hefty fine notice from Foreign Govt and need some sound advice on overseas employment with my situation.
I was working for a foreign company that is based in my own country, the job nature required me to travel regularly to an asian country, which is the origin country of this company I worked for. The work travel was 1-2 days stay in hotel paid by company.
During the years, I only need to declare tax in my own country. However, in the last year we are noticed to file tax to the foreign country Govt as well, tax dated back to the year I joined the company.
I have since left the company and this foreign country tax is still haunting me. So a couple of months back I have filed the tax return form to the foreign country Govt, and they asked me to mail my work schedule ( of my travel trips) for their assessment. Just recently, I received a notice of fine from this foreign tax Govt which amounts to a ridiculous hefty sum!!
The thing is, why do I have to declare tax to the foreign country when I have already declared to my own country? Another thing is, I have one dependant and over the years I have no payable tax that I need to pay in my own country, how could the foreign Govt tax fine come up to Thousands of money?? Can I simply ignore it? What happens if I ignore the foreign govt fine? What should I do??
I received a hefty fine notice from Foreign Govt and need some sound advice on overseas employment with my situation.
I was working for a foreign company that is based in my own country, the job nature required me to travel regularly to an asian country, which is the origin country of this company I worked for. The work travel was 1-2 days stay in hotel paid by company.
During the years, I only need to declare tax in my own country. However, in the last year we are noticed to file tax to the foreign country Govt as well, tax dated back to the year I joined the company.
I have since left the company and this foreign country tax is still haunting me. So a couple of months back I have filed the tax return form to the foreign country Govt, and they asked me to mail my work schedule ( of my travel trips) for their assessment. Just recently, I received a notice of fine from this foreign tax Govt which amounts to a ridiculous hefty sum!!
The thing is, why do I have to declare tax to the foreign country when I have already declared to my own country? Another thing is, I have one dependant and over the years I have no payable tax that I need to pay in my own country, how could the foreign Govt tax fine come up to Thousands of money?? Can I simply ignore it? What happens if I ignore the foreign govt fine? What should I do??
Generally speaking, a country has jurisdiction to tax your earnings within its borders. The US has jurisdiction to tax on your worldwide income. Tax treaties are enacted in order to facilitate international commerce and prevent double taxation. As posted, you have not provided enough information but this is how it generally works. You would claim a credit on your 1040 for the tax paid to the foreign country provided there is a treaty with that country (which usually there is). Strictly speaking, you would file with the foreign country then claim the credit here. I know that's not what you want to hear but that's what the foreign country is looking for you to comply. Since you haven't had enough income to owe US tax (I'm guessing you claimed EITC) I'm not certain if you would have a tax benefit from the credit at all. But I wouldn't take anyone's advice to simply ignore it although from a practical standpoint, the foreign taxing authority might not do anything else about it.
When I was having some tax problems and the state said I owed an arbitrary and unreasonable sum, I went and saw a tax attorney who specialized in the tax problem I was having. I suggest you consult a professional.
Ignore it if you dont plan on returning to that country. Foreign laws and 'fines' hold no power over you while in the US.
Thks for all your replies.
Btw I am not in US, am in Asia. I likely to return to that country for leisure since its near to my country. Does that mean if do I'm going to get handcuffed at their airport?
Quote:
Originally Posted by MRG Dallas
Generally speaking, a country has jurisdiction to tax your earnings within its borders. The US has jurisdiction to tax on your worldwide income. Tax treaties are enacted in order to facilitate international commerce and prevent double taxation. As posted, you have not provided enough information but this is how it generally works. You would claim a credit on your 1040 for the tax paid to the foreign country provided there is a treaty with that country (which usually there is). Strictly speaking, you would file with the foreign country then claim the credit here. I know that's not what you want to hear but that's what the foreign country is looking for you to comply. Since you haven't had enough income to owe US tax (I'm guessing you claimed EITC) I'm not certain if you would have a tax benefit from the credit at all. But I wouldn't take anyone's advice to simply ignore it although from a practical standpoint, the foreign taxing authority might not do anything else about it.
I know every country has their rights and laws on tax..but how do I know they are not daylight robbery on my tax income? You're right, my salary is not considered high to be payable for tax in my own country. Also I have a dependant I can claim relief guess pretty much same as US.... so I don't understand how the foreign country would fine me absurd sum of tax money!? I called my local country tax govt for advise, but they couldn't give any, because they are not sure how the foreign tax govt work... what should I do as I don't want to pay them so much money it's crazy they even send a fine notice....!
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Quote:
Originally Posted by joe from dayton
When I was having some tax problems and the state said I owed an arbitrary and unreasonable sum, I went and saw a tax attorney who specialized in the tax problem I was
having. I suggest you consult a professional.
But I don't have connection to any lawyer and can't afford one either...that would probably costs more than the tax fine...
[quote=seriouslyasking;33585387]I received a hefty fine notice from Foreign Govt and need some sound advice on overseas employment with my situation.
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