Not true at all. Canada, for example, taxes your worldwide income.
USA and Eritrea are unique in that they will tax your worldwide income even if you no longer live in those countries (are non-resident.) No other countries in the world have the brass balls to do that.
>USA and Eritrea are unique in that they will tax your worldwide income even if you no longer live in those countries (are non-resident.) No other countries in the world have the brass balls to do that.
But to be fair there is a rather large exemption, around US$ 100,000 per year, the nuisance is that you have to file some tax forms anyway:
>The Foreign Earned Income Exclusion (FEIE, using IRS Form 2555) allows you to exclude a certain amount of your EARNED income from US tax. For tax year 2016 (filing in 2017) this exclusion was $101,300.
Yeah, you're right. It comes back to the USA is special. There's a lot of things it gets away with that other countries could not. There are benefits to being #1.
Only if you are resident in Canada. A lot of countries do that. The USA will tax you even if you aren't resident as long as you have at least a green card or other immigrant visa.
How many people are collecting income from a full time job while living in Canada anyways? Doesn't foreign income (vs. say capital gains) generally imply non residency?
Not if you have an internet business of some kind, or work remotely for a foreign company. But if you do that, you're a schmuck to live in a country with a high tax rate. You can double your income, which means your savings rate probably goes up 600% or more, just by moving to a country that does not tax foreign income. How much faster can you pay off your mortgage under those conditions? How much faster can you retire?
It's not quite as magical as it seems though. If you retire in your 40s because of doing that, you'll need a lot more savings than you would at 65.
Directors of Canadian companies who are living abroad is probably one example.
Also, people who, say, commute from CA to the US on a daily basis will generally be exempt from Canadian taxes because the work is performed in the US (just an example, I have no idea whether you can commute from CA -> US on a daily basis)
Well, I was "taxed" on my Chinese income, but never paid a dime. Foreign tax credits and foreign income exclusions mean most of us pay nothing (well, we pay Chinese taxes, just not US taxes).
That is because there is a cost associated with renouncing US citizenship. You'll get hit with an exit tax on all your assets, making it extremely painful. The US really does not want you to renounce, because then they can no longer tax your global income.
They essentially punish wealthy people (financially) for renouncing.
You actually don't have to prove anything, you just state that you paid taxes and how much you paid (if taking a foreign tax credit). As for rebate, that is something else, meaning those taxes were already withheld by the IRS for some reason.
