One of the major points of concern for US entrepreneurs, citizens, and companies, when they relocate their businesses, careers, or lives in Singapore, are its costly taxation affairs. However, with the guidance of professionals for US tax service for Americans in Singapore, your biggest concern will turn into a golden opportunity. While working overseas, generally US citizens have a list of doubts:
- If I work in Singapore, do I file ex-pat taxes?
- Is my income can subject to double taxation?
- Do US citizens living in Singapore need to file state taxes?
- How do taxes for US expats work?
These are the few common doubts most US citizens have when they leave the land of the US to live or work in Singapore, and their lack of awareness in the process of US taxation in Singapore can lead to the years of financial regret.
Getting Taxed While Working As An American Expat In Singapore? US Taxation Service Singapore Can Lower Your Tax Liability
If you are an American living or working in Singapore, you are always required to file US tax returns within the deadline being an expat. However, living in an abroad country like Singapore doesn’t have to be overwhelming when you can count on the expertise of US tax professionals who will help you to navigate your US tax filing from start to end. With sound knowledge, tax experts assist you with everything to file your tax fast, with minimized risk and a maximized return.
How does USA Tax Services Singapore help To Minimize US Expat Tax Liability?
Generally, there are two main tools used for minimizing US taxes for expats:
- Foreign Tax Credit
- Foreign Earned Income Exclusion
As a US expat, you may know that your income can be subject to double taxation (i.e. in both the country where you work, i.e. Singapore and in the US). The overall goal of US tax professionals offering US tax service for Americans in Singapore is to minimize worldwide income tax using the above-mentioned expat tax reduction tools with expertise.
- Claim Foreign Tax Credit On Foreign Income of US Expats
The foreign tax credit, or FTC, is one of the tax treaties available for US expats to eliminate or reduce any US tax liability on the income earned from living and working abroad like Singapore. This is a non-refundable credit that will reduce your US tax liability for the taxes you have paid to the foreign country.
In simple and understandable words, you can claim foreign taxes as a credit against your US taxes. As an expat, it is quite possible that you may not be aware of the regulations of FTC and this is where you need to get the guidance of tax professionals acknowledged with the right expat taxations service in Singapore to claim the FTC on your behalf.
How do the US expats Tax Professionals Claim The FTC?
To claim the FTC, your hired tax professional will file the form1116 and attach this to your filed expat tax return. Filing FTC claims will become easier with American tax expat professionals in Singapore.
Using the Foreign Earned Income Exclusion
The cornerstone of tax professional strategy to legally minimize the taxation of a US citizen’s personal income has always been the FEIE, Foreign Earned Income Exclusion. This credit is available to US citizens living in Singapore as a valuable means of helping reduce the tax burden for expats by allowing qualifying expats to exclude a part of their income from their federal income tax.
With a pool of resources, up-to-date expat taxation information, and years of expertise in offering the USA tax services in Singapore, you can always rest assured that your tax compliance is in the right expert hands. For successful US expat taxation, it requires the sound expertise, guidance, and careful planning of US taxation experts in Singapore.