No tax for foreign employees of U.S. firms — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

No tax for foreign employees of U.S. firms

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Q. My cousin is a citizen of Taiwan who works for an American company overseas. He only comes to the United States once or twice a year. Does he have to pay U.S. income tax? M.C.M., Sacramento, Calif.

A. Probably not. As a general rule, foreign citizens who work abroad for U.S. firms or their subsidiaries do not have to pay U.S. income tax. They may be taxed to the extent that they spend any time working in this country, but many foreign countries have tax treaties with the U.S. protecting nationals from double taxation. Tip: You can obtain the texts of most tax treaties at

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