Dear Friends ,
I have a rental property income in Pakistan, and I am currently Green Card holder in USA.
I will be filing and paying Taxes this year in Pakistan as well due to rental income.
Will I have to pay taxes on that income in USA as well? does it matter what percentage you are taxed in Pakistan to determine that you have further liability on that income in USA ??
anyone has any ideas , plz share .
thanks !
Pakistan® replied on Monday, April 11, 2016 02:40 AM
one of my friend recently shifted to UK
and he has to expose all rental income across the world so that he can be taxed in UK.
he said he cannot hide coz later on if UK authorities come to know then it would be bad for him |
Ghauri replied on Monday, April 11, 2016 03:41 AM
Take a birth in Pakistan, grow in Pakistan, utilize Pakistani assets either to get educated in UK or to get settled in UK, earn from UK, utilize UK earned money for investments in Pakistan, get investment profits from people of Pakistan and hand over profit earnings in the form of taxes to UK so that UK could utilize it for the welfare of UK.
How to counter this situation, is the main challenge. |
MS replied on Monday, April 11, 2016 04:08 AM
No need to give reference to ur foreign income when u file US taxes it will only complicate ur tax return unnecessarily. Im living here since last 13 years so im giving you sound advice but decision will urs on what you wanna do but honestly by law ure supposes to pay taxes on what u earn here and they have no way go and check how much is ur rental income in lahore unless u tell
them ur self, so bother only file taxes on what u earn in this country and all will be fine IA. |
Zak replied on Monday, April 11, 2016 04:08 AM
Hi, You have to declare world wide income. |
ah replied on Monday, April 11, 2016 05:01 AM
Main thing is system. They developed system in UK,If u will develop here,people will stay here and investment also,any way Pakistani's who r working abroad they r sending 20 billion dollars in a year,and this country is running on that money. |
Advise replied on Monday, April 11, 2016 05:32 AM
MHA. It is better to consultant a tax consultant to have a paid professional advise and then you can make an informed decision. These are long term and complicated issues and decision have to be based on law and circumstances. Few things, which i can share but get it confirmed from a tax consultant. Not sure about current year but in Pakistan rental income used to be taxed as a separate block of income at lower rates. The fundamental principle of taxation is that same income cannot be taxed twice. To this effect, Pakistan and USA would have taxation treaties which you can check. As you must be aware, US Citizens have to file return irrespective of their residence. Please consult a tax professional and consider the above before making a decision. |
Aa replied on Monday, April 11, 2016 06:34 AM
Yes you have to report worldwide rental income including that in pak. |
Adnan replied on Monday, April 11, 2016 07:29 AM
One of my friend has same case - he have Green card but do his job in Islamabad at a multi national oil company. Of course he pays Tax of his income in pakistan but in USA he also shows same income of pakistan and pay Tax in USA as well but after deduction of Tax paid in pakistan. For example according to US Tax, his tax payable is 100000 and according to pakistan , his tax is 60000, so he pays 60000 in pakistan and in USA he pays 40000 after showing that he paid 60K In pakistan because pakistan and USA both are in agreement of Mutual Tax system to avoid duplicate taxes. For more Information you may contact some USA lawyer. |
