Introduction And Residence
Generally speaking, the US is not an attractive location for resident expatriate executives seeking to limit taxation.

Taxation Of Resident Alien
Tax-resident foreign nationals in the US are taxed just about on the same basis as a US national.

Taxation Of Non-Resident Aliens
The US tax position of a non-resident alien is reasonably favourable.

Tax Treaties
A resident or nonresident alien from a country with which the United States has an income tax treaty may qualify for certain benefits.

Services For Foreign Employer
If a non-resident alien is paid by a foreign employer, his or her US source income may be exempt from US tax.

Social Security And Medicare Taxes
Resident aliens, in general, have the same liability for Social Security/Medicare Taxes as US citizens.

Totalization Agreements
TheUS has agreements with some foreign countries to avoid double payment of social security taxes.

Information provided on this site is for general guidance only and is often simplified. Actual IRS procedures are complex, and taxpayers should obtain professional assistance or use IRS sources for complete information.

Services For Foreign Employer

If an individual is paid by a foreign employer, his or her US source income may be exempt from US tax. If three conditions described below exist, income for personal services performed in the US as a nonresident alien is not considered to be from US sources and is tax exempt. If an individual does not meet all three conditions, his or her income from personal services performed in the US is US-source income and is therefore taxed.

The three conditions are:

• An individual performs personal services as an employee of or under a contract with a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in a trade or business in the US; or works for an office or place of business maintained in a foreign country or possession of the US by a US corporation, a US partnership, or a US citizen or resident;

• An individual performs these services while a non-resident alien temporarily present in the US for a period or periods of not more than a total of 90 days during the tax year; and

• His or her pay for these services is not more than $3,000.

If pay for these services is more than $3,000, the entire amount is income from a trade or business within the US. When calculating whether pay is more than $3,000, any amounts from an employer for advances or reimbursements of business travel expenses should not be included. If the advances or reimbursements are more than the expenses, the excess should be included in the amount of pay.

Introduction And Residence
Generally speaking, the US is not an attractive location for resident expatriate executives seeking to limit taxation.

Taxation Of Resident Alien
Tax-resident foreign nationals in the US are taxed just about on the same basis as a US national.

Taxation Of Non-Resident Aliens
The US tax position of a non-resident alien is reasonably favourable.

Tax Treaties
A resident or nonresident alien from a country with which the United States has an income tax treaty may qualify for certain benefits.

Services For Foreign Employer
If a non-resident alien is paid by a foreign employer, his or her US source income may be exempt from US tax.

Social Security And Medicare Taxes
Resident aliens, in general, have the same liability for Social Security/Medicare Taxes as US citizens.

Totalization Agreements
TheUS has agreements with some foreign countries to avoid double payment of social security taxes.