UK, Sweden, Belgium, Canada, Luxembourg & Austria U.S. tax planning in the United States looks at the unique tax treaties for these citizens. Below are the magical words from the Tax Treaties for the citizens of The UK, Sweden, Belgium, Canada, Luxembourg, Austria, Thailand and Tunisia:
“An individual who is a United States citizen or an alien admitted to the United States for permanent residence (a “green card” holder) is a resident of the United States only if the individual has a substantial presence, permanent home or habitual abode in the United States and if that individual is not a resident of a State other than the name for other country for the purposes of a double taxation convention between that State and the name for other country.”
UK, Sweden, Belgium, Canada, Luxembourg & Austria U.S. tax planning starts with your U.S. Visa.
Tax Treaties with these words allow U.S. resident aliens to legallyavoid U.S. income taxes on their foreign income.
For example, Mr. Bond, a U.K. citizen has a substantial presence in the U.S. He does not have a green card. He is in the U.S. on an investor visa. Mr. Bond only pays U.S. income tax on his U.S. income. The income from his U.K. business and all other foreign companies or investments is U.S.
Mr. Bond only pays U.S. income tax on his U.S. income. The income from his U.K. business and all other foreign companies or investments is U.S. tax free.
IRS Publication 519 “states that the U.S. domestic rules that determine if a non-U.S. citizen is a U.S. resident do not override tax treaty definitions of residency.”
Below is our e-book of IRS Publication 519 explaining international tax planning for Sam, a U.K. citizen living in the U.S.
The IRS example discussing Sam applies to citizens of UK, Sweden, Belgium, Canada, Luxembourg, Austria, Thailand and Tunisia. If you want the PDF version of this IRS publication, then email me at [email protected]
If you have overpaid your U.S. income taxes and want a refund, then email me, Brian Dooley, CPA, MBT, at Br[email protected] We work with other CPAs.