on February 27, 2010 by admin in Expats, Comments (5)
Why Do Scientists Working In Antarctica Have To Pay Us Federal Income Tax?
I studied geology for a few years and know a geologist who is currently working in Antarctica. I also previously lived and worked overseas and know that for American expatriates, the first $70,000.00/yr is exempt from Federal income tax because expats are responsible for paying local taxes in a foreign country. From what he says, however, he must pay and said it was because per the United States Tax Code Antarctica is not a foreign country, therefore it is exempt from the Foreign Earned Income Exclusion. http://www.irs.gov/businesses/small/inte…
Last I heard, Antarctica was not a part of the U.S. Do Russian, French or scientists from other countries who are working in Antarctica have to pay taxes to their homeland?
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Tags: Antarctica, Country, earned income exclusion, Federal, foreign earned income, foreign earned income exclusion, Have, Income, Scientists, tax, U.S. Do, United States, Working
Bostonian In MO
February 28, 2010 @ 3:01 am
To claim the Foreign Earned Income Exclusion you must either have a residence in a FOREIGN COUNTRY or meet the physical presence test in a FOREIGN COUNTRY. The rule is NOT “outside the US” but IN A FOREIGN COUNTRY. If you are in international waters (say on a ship) you are NOT in a FOREIGN COUNTRY.
Antarctica is NOT a country. It is a continent that by international treaty is not owned by any nation. And since it has no permanent human population or government it is NOT a foreign country under the tax code.
What the personnel from other countries have to pay is up to their home country. The US is actually one of the few that taxes its citizens when they are outside the country so it’s likely that many of the non-US folks there don’t have to pay any tax on their income.
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Bostonian In MO
February 28, 2010 @ 6:04 am
Antarctica is a ‘no man’s land’, by international agreement. It is not a country, nor is any of it claimed by any other country on the planet. There are no taxes of any kind levied by Antarctica, since it has no government. Thusly, those who work there are employed as if they were working in their own country.
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acermill
February 28, 2010 @ 9:50 am
he’s still a US citizen, right?
he’s not getting taxed twice, as in living in foreign country, so what’s the issue? freedom is not cost free.
Who runs those icebreakers and supply ships? who sends in help if something goes wrong? who pays for that?
he could renounce his citizenship if he really wants out of the taxes, I suppose.
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Izzy F
February 28, 2010 @ 11:21 am
I do have sympathy for the workers assigned there. The IRS has ruled that since Antartica is not a foreign country, so the foreign earned income exclusion does not apply….yet the Federal Labor board ruled that it isn’t the US either, so they don’t get time and a half overtime….
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the tax lady
February 28, 2010 @ 4:35 pm
try and not pay taxes for your stay there. you will spend some time in a federal pen.
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