Expatriate and Foreign National Taxation

International tax.

Helping you find direction.

Welcome to our site on expat tax matters.

We have fully rewritten the section on our firm providing details on who we are and the services we offer.

The US Citizens section has been totally revamped and now reflects changes to the tax law from the Tax Increase Prevention and Reconciliation Act (May, 2006). Our often requested page on the physical presence test and how to count days while abroad, is back-up as well.

The Foreign National section of the web site has been rewritten to add more information of direct interest to the employee. Gulf of Mexico crewmember tax compliance issues are becoming more prominent so see the OCS visa endorsements part of our visa page. Vessel owners and operators should see our Crewmember Taxation - OCS page for income and social tax information.


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Foreign earned income exclusions.

When US citizens work abroad, they may qualify for the foreign earned income exclusions. A general description of these exclusions is available on our General Questions page.

Income and Social Tax witholding.

Your wages may or may not be subject to withholding for income, Social Security and Medicare taxes while on foreign assignment. You may find that your wages are now subject to hypothetical taxes by your employer, or income and social tax withholding by the host location's government.


Physical presence

To qualify for the foreign earned income exclusions using the physical presence test (PPT) an individual must have 330 full days in a foreign country during a 12 month period. Only full days in a foreign country count. Any 12 month period can be used.


Bona fide

Qualifying for the foreign earned income exclusions under the Bona Fide Residence Test (BFR) requires that you be a tax resident in that country for an entire calendar year. This means that you have not submitted a statement of nonresidence to that country and be subject to income taxation there.