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Tax Implications Of Working Abroad Essay

Foreign Work Reimbursement When it comes to job situations that involved a lot of travel or otherwise involve being away from home, working a foreign assignment would surely have to be near or at the top when it comes to the complexity and considerations that are involved. There are some massive legal and lifestyle implications involved including paying for lodging/food while working abroad, the tax implications and so forth. The assignment for this paper asks the author to offer an opinion on the most "essential" reimbursement types when it comes to working abroad. While some may point to cost of living, rent or food, the real issue would be taxes due to the complexity and variance of the tax codes and treaties that exist between the United States and other modernized countries of the world.

Analysis

Many employers operate and exist in multiple countries and this sometimes necessitates having domestic employees work in foreign countries (As partially noted in the introduction, the adjustment necessary when working in a foreign country when it comes to currency conversion, cost of living differences, rent and food are typically going to be handled...

It would probably be typical that the employer pays the rent or suite fees for the employee directly rather than making the employee pay out of pocket and then pay the company back. While a lot of food would have to be paid for by the employee, the employer would surely provide a lot of that as well at the company sites, at the very least. When it comes to traveling to and fro in the form of rental cars, taxis and the airfare, a lot of that can be prepaid by the company and anything that has to be paid for on the stop can be reimbursed. It is indeed not that complicated a process and true business expenses are not typically taxable to the employee (IRS, 2015).
However, the tax implications involved are a whole other matter. Just as one example, many countries have their own versions of what the United States knows as Social Security. Indeed, the United States makes people working in the country on immigrant visas pay Social Security and Medicare even though they are not citizens unless they have an exemption like those on student visas. What this all means for a worker from the United States working abroad is that…

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References

IRS. (2015). Moving Expenses to and from the United States. Irs.gov. Retrieved 11 November 2015, from https://www.irs.gov/Individuals/International-Taxpayers/Moving-Expenses-to-and-from-the-United-States

IRS. (2015). Publication 15-B (2014), Employer's Tax Guide to Fringe Benefits. Irs.gov. Retrieved 11 November 2015, from https://www.irs.gov/publications/p15b/ar02.html

IRS. (2015). Social Security Tax Consequences of Working Abroad. Irs.gov. Retrieved 11 November 2015, from https://www.irs.gov/Individuals/International-Taxpayers/Social-Security-Tax-Consequences-of-Working-Abroad

IRS. (2015). Tax Topics - Topic 514 Employee Business Expenses. Irs.gov. Retrieved 11 November 2015, from https://www.irs.gov/taxtopics/tc514.html
Rampell, C. (2010). Value-Added Taxes: A Primer. Economix Blog. Retrieved 11 November 2015, from http://economix.blogs.nytimes.com/2010/04/19/value-added-taxes-a-primer/
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