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0 pointsMrPowers5y ago0 comments

Most countries follow territorial / residence based taxation. People that live in the country are taxed in that country. An Italian that lives in Italy pays tax to Italy. An Italian that lives in the US, pays tax to the US.

A couple of countries have worldwide / citizen taxation (i.e. the US). A US citizen that lives in Singapore will pay tax to both Singapore and the US. They pay tax to Singapore and can claim a tax credit on their US tax return. They can also claim the foreign earned income exclusion deduction.

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unishark5y ago

> A couple of countries have worldwide / citizen taxation (i.e. the US). A US citizen that lives in Singapore will pay tax to both Singapore and the US. They pay tax to Singapore and can claim a tax credit on their US tax return. They can also claim the foreign earned income exclusion deduction.

So it ends up working out like residence-based taxation for most people anyway, but with more steps? Except I guess if the country has a lower tax rate than the US, then you'd need to pay the difference?

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0 pointsMrPowers5y ago0 comments

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unishark5y ago

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