Taxes in Taiwan
My friend is moving to Taiwan. He will be working for a US company, but their branch is located in Taiwan.
How can anyone answer that if you don't say what country he is a citizen of?
If he's earning less than $76,000 a year, and he's out of the country long enough, then he should be exempt from US tax. Check it out on the IRS site.
I'm sorry, he's a US citizen. This will be his first time living outside the country.
The current amount for last year's tax year (2003) was 78,000$ USD. Next year (2004) it will be 80,000 I think.
But keep in mind that an extension to file is not the same as an extension to pay anything that might be owed.
I have a friend who's a German national who worked in the US for five years or so. The German govt thought he was paying US taxes and the US thought he was paying German tax so, he basically got off without paying.
It is likely that his company will do tax equalization. They pay his taxes for him in Taiwan and get the tax break in the US. He earns and pays taxes like he stayed in the US. This often happens even if he transfers to the Taiwan payroll. I lived in Germany for several years working for a German subsidiary and that is how mine were done. My tax returns were scary: prepared by PWC and 100+ pages long.
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