Companies sometimes send individuals overseas to work in other branches of the company. These expatriates then need to figure out what their tax obligations are in each of the two countries involved, which can be quite confusing. Filling out paperwork incorrectly could lead to a person having to pay taxes on the same amount of income twice, making it a lot less profitable to work in another country. The laws regarding international taxation can be a bit confusing, but a company like can help people figure out their obligations and the best way to meet them.

U.S. Citizens Abroad

People with United States citizenship who work in another country or earn income in another country still need to pay U.S. taxes on this income. This may lead to double taxation if there isn't an international tax treaty that allows for taxes paid in one country to be deducted from the tax burden in the second country. Many countries have these agreements with each other, but they often require a person to file the appropriate paperwork in each country to get the benefits of the treaty, which can be confusing. People who are living outside the U.S. for an extended period of time may not need to pay taxes on all of their earned income, only that above a certain exemption level. They can usually also often deduct the amount of money they paid in taxes to the country where they are currently residing. A tax professional with experience in international taxation can help a person determine just how much they owe in each country.

Nonresident Aliens in the U.S.

Even people who aren't United States citizens must pay taxes on money earned in the U.S. They pay at the same rate as American citizens as long as the income they earn is more than the personal exemption amount. Students in the country on certain types of visas don't need to file taxes, however, as long as they meet the conditions of the visa. Certain employees of foreign governments or international organizations may also be exempt from paying U.S. taxes. The laws of the country of residence will determine just how much a person has to pay in total in taxes, and this can vary quite a bit between countries. Some countries allow for full tax exemption for those who've lived in another country for a set amount of time, such as 6 months or a year, and others may allow for some sort of tax credit.