As one of the most popular destinations for expats worldwide, the USA offers endless opportunities from career advancement and world-class education to a diverse cultural experience and high standard of living.
In this guide, we’ll walk you through everything you need to know about relocating to USA from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
USA follows a citizenship taxation model. If you are a citizen, you will pay tax on worldwide incomes, irrespective of your resident status.
if you spend more than 30 days in USA during the tax year and 183 days in the current and previous two tax years.
if you are a citizen of the USA.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in USA, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, USA has 67 double taxation agreements signed.
