I am a US citizen considering an employment offer to work in China for a foreign (Dutch) company. I would receive 100% of my salary in chinese RMB currency, no salary would be paid in USD. I expect to pay about 30% in various taxes to the Chinese govt. Can anybody give me some insight about how does the US determine my tax liability for my income? Do I get "double taxed" on the same income, or does the IRS have some formula such as I would normally owe 35% tax on so since I already have paid 30% to China, then I only need to pay the difference of 5% to the US? Also I am aware of the Foreign Earned Income Exclusion for people who maintain a physical presence outside of the US. This will apply to me, and actually I expect to be able to declare my tax home (bona fide residence) to be in China. So when we look at the threshold of the first 80k of income being excludable, is this from my pre-tax income or income received after paying chinese taxes? Any replies (or suggestions for further reading) will be appreciated. - Raleigh
- posted
17 years ago