American tax for us residents living Singapore

American tax for us residents living Singapore

Singapore is an enticing city for its quality of life, cleanliness and global community. Today, 1.31 million expatriates live in Singapore, so if you intend to join them, do you need to know about the tax consequences of such a move, and more precisely how US taxes will affect you?

Will the move to Singapore affect your taxes in the United States?

While a U.S. resident, you are expected to report your worldwide income to the U.S. tax authorities (IRS) every year, irrespective of the nation in which U.S. citizens Living Abroad Expat Taxes or U.S. expats living abroad must file U.S. tax and may also be required to file F BAR, which reports Foreign Financial Accounts on Form 114, if The overall value of the accounts is $10,000 or more at any point during the year.

American tax for us residents living Singapore the U.S. government is among the few governments that allow U.S. citizens to disclose their worldwide income irrespective of whether you live in the U.S. or abroad. However, there are special rules to help shield them from double taxation:

Foreign income exclusion allows an taxpayer to reduce their taxable income on US tax returns by $105,900 (the 2019 limit) on income earned abroad.

If a U.S. citizen is a national of another country and is subject to a tax obligation in a foreign country, they are entitled to receive a foreign income tax credit charged on their U.S. expat return using a foreign tax credit.

International housing exclusion helps taxpayers to exempt certain housing costs from their US expat income.

Singapore has comparatively low individual income tax rates, and US expat can be considered resident for tax purposes if it has lived or worked in Singapore for at least 183 days. As a non-resident, the tax will be measured at 15% of the job rate or at the proportional rate whichever is higher. All other non-employee compensation is taxed at 20%. Singapore does not levy a tax on capital gains or inheritances, but it does levy a 3% GST on all sales of domestic use.