Hello, THANK YOU for choosing Just Answer. My goal is to help make your life...a little...LESS taxing.
There is a possibility that it can be taxable. As a U.S. citizen, you are taxed on your worldwide income, whether you are working on U.S. soil or elsewhere. If you have income, you are supposed to file a U.S. Tax return and report all income sources. However, even though no treaty exists between the U.S. and the resident nation of your company, you may still qualify for the Foreign Earned Income Exclusion if you meet the qualifications. SEE BELOW:
web page link:
Foreign Earned Income Exclusion
IRS Form 2555
http://www.irs.gov/pub/irs-pdf/f2555.pdf (2010 Form, 2011 Form not available yet).
If you meet certain requirements, you may qualify for the foreign earned income and foreign housing exclusions and the foreign housing deduction
If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to an amount of your foreign earnings that is now adjusted for inflation ($91,400 for 2009, $91,500 for 2010, $92,900 for 2011). In addition, you can exclude or deduct certain foreign housing amounts.
You may also be entitled to exclude from income the value of meals and lodging provided to you by your employer. Refer to Exclusion of Meals and Lodging in Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, and Publication 15-B, Employer's Tax Guide.