Re:EU top court confirms Apple's €13 billion tax bill in the EU
by returningfory2 on Tuesday September 10, 2024 @02:57PM
(#41504268)
This isn’t the full story though, because there is also the foreign tax credit. If your US taxes are lower than your foreign taxes (which they will be if eg you live in Europe) you won’t pay US tax: https://www.irs.gov/individuals/international-taxpayers/fore...
Re:EU top court confirms Apple's €13 billion tax bill in the EU
by jandrewrogers on Tuesday September 10, 2024 @03:03PM
(#41504322)
There are myriad cases where this is not true, the details of how these tax credits are structured can lead to significantly adverse outcomes. It is quite possible to pay more taxes in aggregate than either country separately.
Re:EU top court confirms Apple's €13 billion tax bill in the EU
by PaulDavisThe1st on Tuesday September 10, 2024 @04:05PM
(#41504947)
It is certainly possible, but also implies a complex mix of different income types and very specific national pairing.
The usual case where there is a tax treaty is that the expat pays taxes at the rate of the country in which they work. It's really that simple for most people.
Re:EU top court confirms Apple's €13 billion tax bill in the EU
by EduardoBautista on Tuesday September 10, 2024 @02:50PM
(#41504196)
> but not all states (like Cali) honor that and may still charge you state income tax
Whoa, so before moving to a low tax country you should move to a state that is not insane for a while and then move abroad? Crazy.
Re:EU top court confirms Apple's €13 billion tax bill in the EU
by ApolloFortyNine on Tuesday September 10, 2024 @04:09PM
(#41504977)
Yes, but from reading it sounds like California is a bit of a poison pill and will go at length to try and say you still live there. I've read of cases where even living in another state for 6+ months, drivers license moved over, no property in California, wasn't enough.
Not sure how they get away with it really, small volume I guess.
Re:EU top court confirms Apple's €13 billion tax bill in the EU
by jandrewrogers on Tuesday September 10, 2024 @02:56PM
(#41504255)
Yes, this is a real thing. There are a few States like South Dakota that have kind of made a business of helping expats launder their State citizenship.
The USA has FEIE, (no federal taxes the first $120k/yr), but not all states (like Cali) honor that and may still charge you state income tax.
and FEIE doesn't exempt you from self-employment taxes.
and doesn't exempt non-earned income (dividends, etc.).
Americans can come out ahead (if they earn less than $120k/yr and live in a 0% tax country). But a non-American (like Canadian) doing the samething, would have less restrictions.