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US Taxes on X-Pats
Robert Hettinga <[email protected]>
> However, as Black Unicorn has noted here before, the Phillipenes are the
>only other country besides the USofA where citizens are taxed any income
>you get, no matter where on earth you actually earn it.
It is not exactly that bad if you are outside the USA. I got ahold of the
IRS codes on this before I left the USA (so about 2 years ago). The rule
then was that the first $70,000 you earned was tax free if you were
outside the USA for 330 days or more of the year. From another x-pat in
Anguilla I heard that the $70 K had been increased.
If you live outside the USA and have a corporation outside the USA, you
might prefer that the corporation buy a company yacht rather than pay you
more than $70 K. And at least on this tropical island, $70,000 tax free
would go a very long way.
It is true that if you are getting dividends and interest on your fortune
that moving outside the USA won't help, unless you get rid of your
US citizenship. And the USA wants you to pay capital gains on your
fortune as if you sold everything for cash right before you got rid of
your US citizenship. So it seems best to get rid of it before you
are really rich. :-)
-- Vince
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