Frequently Asked Questions about International Tax

Are you a Washington DC-based firm who is about to make a deal with a foreign firm? As a U.S. citizen, you definitely know the scope of the U.S. tax system. This article outlines a few of the basic facts about international tax through commonly asked questions.

The solutions presented in this short article are not planned as legal guidance. For legal guidance and specialist advice, contact a reliable Washington DC lawyer and inquire about your case-specific international tax problems.

Do U.S. expats have to pay U.S. taxes if they’re already paying taxes in the foreign country they live in?

Broadly speaking, yes. Even if we were to narrow the inquiry down, the solution would mainly be affirmative, giving the term “expatriate” is comprehended as a US citizen living outside the United States. The U.S. tax system makes up a system of around the world taxes. So, the worldwide earnings of U.S. persons that live outside the United States undergo US tax obligations.

Do US expats get foreign income tax obligation exemptions?

Yes, a US person or business earning earnings abroad could get the international earned revenue exemption and/or for a foreign tax obligation credit rating to be claimed versus their US tax obligations. Not every expat will certainly get approved for the internationally gained earnings exclusion or foreign tax credit, so it is very important to talk about your case with a skilled international tax attorney.

How you can inspect if the U.S. has a tax treaty with the country I am from?

As a foreign person earning income in the U.S., your U.S. resource earnings undergo US income tax obligation. You might additionally go through a 30% withholding tax on any kind of income you might have in the US. This price can be decreased if your citizen country has an Income Tax Treaty with the US.

If you still have inquiries or uncertainties, contact Paula Brunoro-Borokhov, a knowledgeable attorney fully equipped to handle international tax issues.

What are green card holders’ responsibilities if they have lived outside the USA for a period of time?

As a green card holder, you are needed to report your global earnings no matter how long you have lived abroad. If, nonetheless, you surrender your green card or it is taken away from you, you will need to file US income tax as a non-resident alien.

What is OVDP?

Offshore Voluntary Disclosure Program (OVDP) is an effort some Washington DC and other US taxpayers employ to disclose unreported international revenue or unreported international financial assets. Given that not revealing global revenue and also failing to submit FBARs incurs significant fines and also prison time for tax evasion, the OVDP is commonly used to avoid the charges.

However, the Internal Revenue Service is ending the traditional OVDP on September 28, 2018. It is still feasible to apply for OVDP, which is exactly what lots of Washington DC taxpayers are doing. It’s a good idea to seek help from an attorney focusing on the OVPD case making sure your submission procedure goes smoothly and you avoid serious penalties.

Do I need an international tax attorney?

As international trade expands, so does the scope of regulations and legislations relevant to cross-border and also international tax. The United States system of worldwide taxation is intricate and advancing to represent the fast adjustments. Specialist services of a reputable tax attorney are becoming crucial, specifically if you are involved in any kind of kind of tax obligation controversy.

Brunoro Law provides cost-free one-hour consultations that do not form attorney-client relationship. Our principal attorney serves clients from Washington DC and other cities, counties and states throughout the USA.


Hablamos Español – Falamos Português – On Parle Français