Foreign Tax Credit

The importance of foreign tax credits

Foreign tax credits are often offered as a means to prevent double taxation for expatriates and multinational businesses. Additionally, income tax treaties, totalization agreements and other international tax regulations allow for a means to transfer benefits or credits between their host country and their originating country for things like social security and relief of double taxation. Foreign earned income can also qualify for certain exclusions before an expatriate is required to pay any income taxes. 

As an example, the U.S. Internal Revenue Code has a maximum foreign earned income exclusion of $95,100.00 in 2012. Of course, all international tax codes and regulations are subject to change and expert advice should always be sought. PIASCIK international tax professionals have over 75 years of combined international tax expertise and can maximize your income through foreign tax planning strategies, including filing required IRS Form 1116 and Form 2555 for claiming your foreign tax credit and foreign earned income exclusion

Hiring an international tax expert

Paying taxes overseas can be complicated with extensive filings under multiple regulatory entities.. The complexities inherent in international tax regulations are easily navigable by seasoned experts who understand expatriate taxation and how foreign tax credits can be accumulated and utilized. PIASCIK represents over 100 expatriates and international companies with clients in over 49 countries.  

Some factors that affect foreign tax credits:

  • Totalization agreements
  • Income tax treaties
  • Bona fide residence test
  • Times of employment 
  • Type of income
  • Country of income
  • Currency fluctuations
  • Type of assets

These are only a few of the factors that can impact foreign tax credits. Get the most out of your foreign tax credits. Contact the international tax professionals at PIASCIK today and discover our world class service. Our professional consultants already know the best approach with over 75 years of combined firsthand experience in international tax law.

How much money can I save?

PIASCIK knows what the bottom line really is. How much money can PIASCIK save me? Our services have flat rate fess with no hidden charges, unlike some large international tax firms that treat their clients like another number. PIASCIK even offers the first initial consultation for FREE, so we can help you get started in the right direction without any further obligation from you or your company. You have nothing to lose and valuable information regarding foreign tax credits to gain. Contact us today!