Tax Related Question

[hkdman]

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

[KnowItAll]

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