Roadtechs.com

[Eric]

Has anyone ever worked overseas, specifically at the Koeberg Nuclear Plant run by Eskom in South Africa? If so, I would appreciate any information regarding expected contractor rates, cost of living, and tax treatment of income for US citizens, etc.
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Regards,

Eric

[traveltax]

Eric

The tax treatment for any US citizen working overseas will be based on a number of factors but I will put it into a nurshell:

1) Unless exempted by treaty, the host nation will tax income earned within their border

2) If you are there for less than 330 days or in the US for more than 35 days in a 365 day period, the entire income is taxable in the US and the host nation. You are not double taxed however as the US will give you a credit for the tax paid to the host nation

3) If you meet the requirements in #2, you can exclude the foreign income from US taxation up to $91,500 plus some housing allowances. You will still be taxed by the host nation, unless there is a treaty exemption
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Joseph Smith EA
Enrolled Agent, Admitted to Practice Before the IRS
The Mobile Professional Tax Specialists
www.traveltax.com
jsmith@traveltax.com
866.272.7871