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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28089
Experience:  Taxes, Immigration, Labor Relations
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I am a US citizen working for a foreign company, but working

Resolved Question:

I am a US citizen working for a foreign company, but working online from my home in the USA. I know I must pay US taxes on my foreign income, but do I also have to pay the taxes in the Republic of China (Taiwan) too. Please clarify. Thanks.
Submitted: 8 years ago.
Category: Tax
Expert:  Lev replied 8 years ago.

 

This is income from foreign sources. As you noticed US citizens are required to report all income worldwide...

 

As you are in the US - you may not claim foreign earned income exclusion, however - you may claim a credit for taxes paid for taxes paid in foreign country - so the same income would not be taxed twice.

 

Use the form 1116 - http://www.irs.gov/pub/irs-pdf/f1116.pdf please find instructions here - http://www.irs.gov/pub/irs-pdf/f1116.pdf

 

Currently - there is no tax treaty between Taiwan and US...

http://www.irs.gov/businesses/international/article/0,,id=96739,00.html

 

US consideres China and Taiwan as separate countries.

(a) the term "the People's Republic of China", when used in a geographical sense, means all the

territory of the People's Republic of China, including its territorial sea, in which the laws relating to

Chinese tax are in force, and all the area beyond its territorial sea, including the sea-bed and subsoil thereof, over which the People's Republic of China has jurisdiction in accordance with international law and in which the laws relating to Chinese tax are in force;

source - http://www.irs.gov/pub/irs-trty/china.pdf

 

Let me know if you need any clarification.

 

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