Americans Abandon Citizenship, Are Taxes to Blame?

More Americans renounced their citizenship in 2013 than ever before, according to Forbes.

In 2013, a total of 2,999 American left their U.S. nationality, resulting in a 221% increase over 2012, when the total was 932. The data comes from the U.S. Treasury Department’s mandatory quarterly list, publically naming those who’ve renounced their U.S. citizenship or long-term residency. 

Forbes reports that taxes may be at the heart of the issue for many Americans living abroad. Under the Foreign Account Tax Compliance Act, Americans living and working in foreign countries still have to file their earnings with the U.S., often resulting in double taxes.

For more information, see:  U.S. Taxes and Tax Law: An Expat’s Bane?

Read the full story here.

 

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Americans Renouncing their Citizenship up 221%

Forbes reported that more Americans are renouncing their citizenship in the year 2013 with a whopping 221% increase from the year before, according to the article; Americans Renouncing their Citizenship up 221%. Most would wonder what is causing this upward trend. Although the reasons that Americans are renouncing their citizenship could be for a variety of things, like family obligations, or conveniences, spome experts believe that  the primary reason could be US income tax laws. 

America is one the few countries in the world that requires their citizens to pay income tax on global income sources or sources outside of America. Some prominent and wealthy Americans, such as one of the Facebook co-founder, Eduardo Saverin, have given up American citizenship to reside elsewhere, taking along their wealth. Recently, the Foreign Account Tax Compliant Act (FACTA) has also required assets disclosure by expatriates.According to Thailand law firm Chaninat & Leeds requests to assist with renouncing US citizenship are rare. In contrast Chaninat & Leeds points out persons seeking to immigrate to the US are much more frequent.  

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The Income Tax Treaty Between the United States and Thailand: An Overview and Analysis