US citizen living in Bali on retirment do i have to pay tax

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kauaibobby

Member
Oct 27, 2007
39
0
6
santa cruz, california, usa
anyone know about taxes in US.
or where i might find information.
I get paid for my retirement and pay taxes
if i live in Bali can i pay tax here instead of US.
or is it just as exspensive here
any info would be very helpful
I will call a tax attorney on monday
 
D

DCC

Member
May 27, 2006
352
0
16
Br Abangan, Tegallelang
RE: US citizen living in Bali on retirment do i have to pay

As for Bali - You would pay taxes if you were employed not on US retirement benifits (I believe). As for US - H&R baby :)
 
G

Guest

Guest
RE: US citizen living in Bali on retirment do i have to pay

That's an interesting question Bob.

Normally if you are resident in a country you pay taxes in that country regardless of where the income is earned. I don't know if the income is treated any differently for retirees in Indonesia as it would be in the U.S.

I am guessing that most expats that are retired and living in Bali operate under the "don't ask, don't tell" policy. In any case the tax payable in Indonesia and the concessions that should be applied under any tax treaty with the U.S. should cancel each other out in a fair system.

Getting an opinion from an international tax lawyer sounds expensive. Let us know how you go.
 
Jimbo

Jimbo

Active Member
Jan 11, 2005
2,563
18
38
Manchester and Makassar
RE: US citizen living in Bali on retirment do i have to pay

Americans seem to have to pay taxes unless the have no abode (House or place to stay) in the states. I can only go back for a maximum of 90 days a year before I have to pay tax but our poor old cousins do not have that luxury.
 
E

Eman

New Member
Jan 18, 2006
6
0
1
Tokyo, Japan
Re: US citizen living in Bali on retirment do i have to pay

kauaibobby said:
anyone know about taxes in US.
or where i might find information.
I get paid for my retirement and pay taxes
if i live in Bali can i pay tax here instead of US.
or is it just as exspensive here
any info would be very helpful
I will call a tax attorney on monday
Click to expand...

I am not too knowledgeable on retirement income specifically, but I have lived outside the U.S. for many years, and do know a bit about the tax situation for U.S. citizens living out side the U.S.

Firstly, U.S. citizens are required to pay U.S. tax regardless of where in the world they live/earn... But the good news is there are lots of deductions and exemptions, that mean you still have to file tax forms every year, but highly unlikely you would actually need to pay any money.

For example, there is an USD 80,000+ deduction right off the top (so unless your retirement income is more than 80,000 dollars, you are down to zero tax liability right there), also there is a housing decduction allowable, and you can also take a percentage of any tax you do pay in a foreign country (foreign tax exemption).

Bottom line, I have been living, and working in Japan for many years making a good salary... but with all the deductions/exemptions, I actually pay zero U.S. taxes.

Bottom bottom line, I would much rather be in Bali, than working... But another year or two for that.

P.S. I am also very interested to hear your report on what a real tax lawyer has to say.
 
G

Guest

Guest
RE: US citizen living in Bali on retirment do i have to pay

Thanks for the info Eman.

In Bob's case he also needs to know if his U.S pension income has to be declared in Indonesia. I suspect it does because of the international double taxation system.

That is if the tax department in Indonesia is made aware of that income. Maybe he will end up paying zero tax.


Disclaimer: I Make no representations or warranties of any kind, express or implied as to the validity of my comments. I have absolutely no knowlege of international tax matters.

Only what I read in Google.

8)
 
B

BaliLife

Active Member
Mar 27, 2007
1,295
1
36
RE: US citizen living in Bali on retirment do i have to pay

"Firstly, U.S. citizens are required to pay U.S. tax regardless of where in the world they live/earn" - Correct, the US is an anomaly in this regard amongst most western nations. Most other countries are based on residency, i.e. if you meet the residency requirements in Canada or Australia (usually that means spending at lease 6 months or more of the year there but it does entail many more specifics), then you are required to pay tax there, so for an Australian / Canadian such as myself, who might choose to live in Bali, we would not need t0o file taxes in Australia or Canada (unless we had investments there), in which case we’d file as non-residents and that particular investment would be taxable at the non resident rate (without having to declare global income)…
 
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BaliLife

Active Member
Mar 27, 2007
1,295
1
36
RE: US citizen living in Bali on retirment do i have to pay

sorry, to further clarify my post

" then you are required to pay tax there"

should have been,

" then you are required to pay tax there ON GLOBAL INCOME"

ct
 
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