Tax Related Question

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  1. #1

    Join Date
    Jul 2007
    Posts
    8

    Tax Related Question

    Hello. I am an American citizen that is in the final stages of discussions with the HK based operations for my company. I am getting absolutely confused by how the taxes would work for me...if I get paid 200k USD, how would this be taxed? I understand that you are taxed from HK at 16%, so my tax obligation to HK would be 32000 USD. How about the US side...I am reading that you get exemptions for a certain amount of the money? Any help would be great!

    B


  2. #2

    Join Date
    Apr 2003
    Posts
    12,383

    Good place to start ..

    http://hongkong.usconsulate.gov/acs_tax.html

    Has a list of all the forms and documents you might need to study.

    ax Guide for U.S. Citizens and Resident Aliens Abroad

    http://www.irs.gov/publications/p54/index.html

    Exclusion amount. The maximum foreign earned income exclusion is now adjusted annually for inflation. For 2006, the maximum exclusion has increased to $82,400. See Limit on Excludable Amount under Foreign Earned Income Exclusion in chapter 4.
    From http://www.irs.gov/publications/p54/ar01.html#d0e26
    Last edited by KnowItAll; 05-07-2007 at 11:07 AM.