United States Taxation on Worldwide Income

In recent years, the United States has strengthened the enforcement of tax obligations for nonresidents, raising a controversy over the US regional taxation efforts. More and more Americans live abroad and they abandon their citizenship. According to the US Treasury, 1,781 Americans abandoned their citizenship in 2011. It is compared with 742 in 2009 and 278 in 2006 (McKinnon 2012). The company also has a burden. In 2008, 12% of the federal income was from corporate income tax, about half of them from multinational corporations (CBOs) reporting foreign income.

Under the previous law, the US has a system closer to worldwide taxation. However, there are only certain kinds of foreign income. Normally, the government considers passive (such as interest income) or highly liquid income taxed on income. Many kinds of foreign taxes 4. For details of these incentives, Congressional Budget Bureau, tax capital income: effective marginal tax rate under the Act of 2014 and selected policy options (December 2014), www.cbo Please refer to. Gob / publication / 49817 For details on location determination, please refer to Congress Budget Bureau, International comparison of corporate income tax rate (March 2017), www.cbo.gov / publication / 52419.

The United States imposes global revenues on nonresident citizens using the same marginal tax rate as foreign and US source income. In order to reduce the double taxation of the same income, US citizens residing in other countries can exclude some of their foreign income from the US tax and include income tax of other countries, but apply for exclusion You must submit a US tax return form. Even if they do not pay taxes, they will not produce credit. Like American residents, overseas "Americans" are subject to various financial reporting requirements, such as FBAR, FATCA, IRS Form 3520, 5471, 8621, and 8938. Fine for not paying taxes