Outbound employee that is a US citizen or permanent resident
A US citizen or US permanent resident is subject to income tax on worldwide income, regardless of where the employee lives or where the income is earned or sourced.
Note that a Bill has been tabled before Congress proposing that the US should move to residence-based taxation.
These employees will continue to file annual US income tax returns to report worldwide income and to pay the appropriate income tax.
These employees will not be required to pay US social tax where the employee is employed by a foreign employer outside the US. The employee would be subject to social tax in the local foreign jurisdiction. The employee is not able to make voluntary social tax contributions. Voluntary contributions are not allowable in the US social
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Web page updated on 17 Mar 2025 14:48