The global taxation feature of the US code is a double taxation on income, as you typically pay taxes in the foreign jurisdiction as well (There are tax treaties that reduce this double taxation in many jurisdictions, but only to a certain amount). It also applies to US businesses that operate globally and is a major reason so many multinationals move their headquarters offshore. The US, I believe, is one of only two countries in the world that taxes citizens globally, the other being Israel.
That's definitely not the case anymore. Canadians have to pay taxes on world-wide income unless they can demonstrate they have "severed ties" with their Canadian residence. Working abroad for a year or two in an expat job doesn't cut it.
More and more countries are moving towards world-wide taxation, unfortunately.
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The global taxation feature of the US code is a double taxation on income, as you typically pay taxes in the foreign jurisdiction as well (There are tax treaties that reduce this double taxation in many jurisdictions, but only to a certain amount). It also applies to US businesses that operate globally and is a major reason so many multinationals move their headquarters offshore. The US, I believe, is one of only two countries in the world that taxes citizens globally, the other being Israel.
That's definitely not the case anymore. Canadians have to pay taxes on world-wide income unless they can demonstrate they have "severed ties" with their Canadian residence. Working abroad for a year or two in an expat job doesn't cut it.
More and more countries are moving towards world-wide taxation, unfortunately.