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
The US 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.

Totalization Agreements

The United States has entered into agreements with a number of foreign countries, known as Totalization Agreements, for the purpose of avoiding double taxation of income with respect to social security taxes. These agreements must be taken into account when determining whether any alien is subject to the United States Social Security/Medicare tax.

As of this time, the following nations have entered into Totalization Agreements with the United States:

• Australia
• Austria
• Belgium
• Canada
• Chile
• Finland
• France
• Germany
• Greece
• Ireland
• Italy
• Japan
• Luxembourg
• Netherlands
• Norway
• Portugal
• South Korea
• Spain
• Sweden
• Switzerland
• United Kingdom

Any alien who wishes to claim an exemption from US Social Security taxes and Medicare taxes because of a totalization agreement must secure a Certificate of Coverage from the social security agency of his home country and present such Certificate of Coverage to his employer in the United States.

The Social Security Administration also publishes small brochures which concisely describe the terms of each totalization agreement. These brochures are available from many local Social Security offices, or may be ordered from the following toll-free number: 1-800-772-1213. In addition, the complete text of these brochures and of the totalization agreements themselves are available on the Social Security Administration's Website.

Special rules apply, however, to employees who are transferred by their employers in one country to work in the other country for a temporary period. With the exception (at the time of writing) of the agreement with Italy, each totalization agreement provides that such employees will continue to be covered under the system of the country from which they are sent and are exempt from coverage and taxation in the host country.

Under the agreement with Italy, coverage of expatriate employees and self-employed workers is determined based on the workers' nationality.

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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.