Another working abroad question...

[equinecpa]

A client of mine is considering accepting a work assignment abroad 4 weeks in Malaysia, 2 weeks here. He asked me what tax implications this might have.

I don't believe he'd be eligible for the foreign income exclusion so would it be a matter of him just paying Malaysia Non-Resident taxes and then claiming those as a foreign tax credit on his return?

I've found the Malaysian Inland Revenue website and they clearly state their residency and tax rates..

I told him I"d let him know what I could but didn't profess to be an expert on this!

Thanks

Carolyn

[travis bickle]

Any chance that he stays out of the USA during his 2 weeks off?

A client of mine is considering accepting a work assignment abroad 4 weeks in Malaysia, 2 weeks here. He asked me what tax implications this might have.

I don't believe he'd be eligible for the foreign income exclusion so would it be a matter of him just paying Malaysia Non-Resident taxes and then claiming those as a foreign tax credit on his return?

I've found the Malaysian Inland Revenue website and they clearly state their residency and tax rates..

I told him I"d let him know what I could but didn't profess to be an expert on this!

Thanks

Carolyn

Will he actually be working 4 weeks in Malaysia, and then physically returning to the USA for 2 weeks? If so, you are correct.

But, if his situation is "work 4 weeks, then have 2 weeks off" as long as he does not return to the USA he may qualify for the income exclusion. Perhaps he can use the 2 week periods to travel. Perhaps he could visit friends/relatives in Mexico/Canada, etc?

I realize this is a stretch, but there may be ways for him to do some traveling and use the exclusion.

Finally, make sure he counts his 330 days accurately/correctly. Days of travel do not factor in.