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Question for the Money Doctors

Question submitted on May 3, 2012.

Question

Hello, I have been offered a position with a New Zealand company which operates in Singapore. So, (a US citizen ) will be moving to Singapore. I was wondering if there is advise you have that would allow me to forego double taxation?
thank you!
paula

Answer

Hello Paula.  It seems that you have done a little homework and know that as a U.S. citizen, your worldwide income generally is subject to U.S. income taxation, regardless of where you are living.  IRS Publication 54 is always a good reference tool for US citizens working abroad.  The publication discusses special tax rules for U.S. citizens who work abroad or who have income earned in foreign countries.

IRS Publication 54 discusses several tax provisions that mitigate your double taxation concern, such as:

  • Foreign earned income exclusion
  • Foreign housing exclusion and deduction
  • Foreign moving expenses
  • Foreign taxes
  • Tax treaty benefits

That being said, please note that the income tax rules applicable to expatriates are very complex and you would be well served by contacting a CPA/PFS who will be able to help you.  Please visit www.findapfs.com to find a CPA/PFS in your area. 

Congratulations on your new job offer.  Sue


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