I’ll be Working in Another Country But Am Paid by My Company in the US; What do I Need to Know?
Q&A: I’ll be working in another country but paid by my company in the US– what do I need to know?
Q: I would like some information regarding expatriate tax as related to my somewhat unique situation. My company is planning to send me to the Dominican Republic to work with our offshore partners. Here are the specifics of my situation:
- I will be working in the Dominican Republic for 1-3 years
- I will be paid by my company in the US
- My company has not incorporated in the Dominican Republic
- I will simply be working with companies in the DR but will be working for and getting paid by my company in the US.
- I plan to travel to the US at least twice each year, probably around Christmas and the 4th of July.
- What are my options? Thanks again in advance for any information you can provide.
A: The MOST important thing to remember is whether or not you will qualify for the Foreign Earned Income Exclusion. That is where the 330 day rule comes from.
All the time you return for meetings, vacation, medical emergencies, etc. count against it. Are you going to be paying taxes in the Dominican Republic? If so, you will also be eligible for the Foreign Tax Credit.