The Masked Tulip Posted November 12, 2013 Share Posted November 12, 2013 Interesting. Quite a dramatic move for Americans to leave the land of the free, etc. http://www.businessinsider.com/couple-moved-to-thailand-to-avoid-us-financial-struggles-2013-10 Link to comment Share on other sites More sharing options...
The Ayatollah Buggeri Posted November 12, 2013 Share Posted November 12, 2013 However, if they wish to retain their US citizenship, they are still required to complete US tax returns, and unless there is a reciprocal tax arrangement between Thailand and the US, pay US federal income tax. It is precisely to avoid having to do this that an increasing number of people are abandoning their US citizenship. If they simply live it up in Thailand and do nothing, they could find themselves on the receiving end of a very nasty bill, enforceable with criminal sanctions (i.e. jail) upon their return. Link to comment Share on other sites More sharing options...
Dorkins Posted November 12, 2013 Share Posted November 12, 2013 Rent arbitrage, coming soon to an overpriced country near you. Link to comment Share on other sites More sharing options...
MartinE Posted November 12, 2013 Share Posted November 12, 2013 Must have thought "Phuket - we are leaving this country." Link to comment Share on other sites More sharing options...
Democorruptcy Posted November 12, 2013 Share Posted November 12, 2013 However, if they wish to retain their US citizenship, they are still required to complete US tax returns, and unless there is a reciprocal tax arrangement between Thailand and the US, pay US federal income tax. It is precisely to avoid having to do this that an increasing number of people are abandoning their US citizenship. If they simply live it up in Thailand and do nothing, they could find themselves on the receiving end of a very nasty bill, enforceable with criminal sanctions (i.e. jail) upon their return. Even if you have never lived there you still might have to pay tax: Here’s the strange thing—he’s never lived in the US. He’s never worked in the US. He’s never earned a penny in the US.Despite this, however, the government in the Land of the Free is demanding past due tax returns. They want their ‘fair share’ of his lifetime earnings. This is nuts. Simply by accident of birth, someone who has never lived in the country is being forced to pay all these taxes, plus interest and penalties. Unreal. The only way for him to get out of this tax regime is to renounce his US citizenship. The problem with this, though, is that it only frees him from future tax obligations. In other words, they won’t allow him to renounce his citizenship until he pays up. Only then will they release him http://www.sovereignman.com/finance/this-guy-has-more-passports-than-i-do-12915/ More people renouncing their US citizenship: A massive 1,131 individuals renounced their US citizenship last quarter, according to data that has yet to be officially released (though I was able to procure an advanced copy).This is a HUGE jump. Compared to the same quarter last year in which 188 people renounced their US citizenship, this year’s number is over SIX TIMES higher. Not to mention, it’s 66.5% higher than last quarter’s 679 renunciations. http://www.sovereignman.com/expat/massive-jump-in-people-who-renounced-us-citizenship-last-quarter-12531/ Link to comment Share on other sites More sharing options...
LuckyOne Posted November 12, 2013 Share Posted November 12, 2013 However, if they wish to retain their US citizenship, they are still required to complete US tax returns, and unless there is a reciprocal tax arrangement between Thailand and the US, pay US federal income tax. It is precisely to avoid having to do this that an increasing number of people are abandoning their US citizenship. If they simply live it up in Thailand and do nothing, they could find themselves on the receiving end of a very nasty bill, enforceable with criminal sanctions (i.e. jail) upon their return. It is not quite as onerous as it sounds financially although it is a compliance burden for sure. The tax paid locally is a credit to US tax due. The US tax due is only for Federal tax and not for state or local taxes while non-resident. Most Americans that I know who live abroad, across the economic scale, have to file but not pay any additional taxes. For some of them, there is a timing difference during their first and last years abroad where they pay in the first year and get it all back in their last year. Link to comment Share on other sites More sharing options...
The Ayatollah Buggeri Posted November 12, 2013 Share Posted November 12, 2013 The tax paid locally is a credit to US tax due. Only if the US and Thailand have a reciprocal tax arrangement (which they do - see the 'relief from double taxation' paragraph). But these arrangements don't exist between the US and every potential country an expat could go to. Link to comment Share on other sites More sharing options...
Democorruptcy Posted November 12, 2013 Share Posted November 12, 2013 To the mod who moved this thread..... Might be better in here....? http://www.housepricecrash.co.uk/forum/index.php?showforum=72 Link to comment Share on other sites More sharing options...
LuckyOne Posted November 12, 2013 Share Posted November 12, 2013 Only if the US and Thailand have a reciprocal tax arrangement (which they do - see the 'relief from double taxation' paragraph). But these arrangements don't exist between the US and every potential country an expat could go to. True. It is places that don't have tax treaties with the US that are a problem for Americans. Link to comment Share on other sites More sharing options...
MarkG Posted November 13, 2013 Share Posted November 13, 2013 It is places that don't have tax treaties with the US that are a problem for Americans. Anywhere is a problem for Americans. If they're rich, particularly if they live in a low-tax nation, they're paying large amounts of money to a country where they don't live, if they're poor, they're paying someone to fill out a tax return for them just so they don't have to pay any tax. US citizenship is becoming a huge liability these days. Link to comment Share on other sites More sharing options...
JoeDavola Posted November 14, 2013 Share Posted November 14, 2013 Interesting. Quite a dramatic move for Americans to leave the land of the free, etc. http://www.businessinsider.com/couple-moved-to-thailand-to-avoid-us-financial-struggles-2013-10 I know a couple of Americans - they both work long hours and get 10 days off a year. Whereas I work 9-5 and get 42 days off a year. I don't care how big the houses are, you can shove America. I don't want to live to work. Link to comment Share on other sites More sharing options...
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