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Post by kingsman on Apr 2, 2018 18:41:15 GMT
Was curious about how taxes work for first-year employees from the U.S.
I'll be arriving in mid-April, and while I know I have to pay taxes on my U.S. income for the year, I was curious how my income from Saudi for the rest of the year will be treated. Is it tax-free, or does that not kick in until the beginning of 2019? Should I set aside some of my income to pay U.S. taxes for 2018?
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Post by vpainter on Apr 3, 2018 16:38:15 GMT
Unless changes have be maade in the tax rules, you will pay regular taxes on the income you earned n the U.S. Then have the foreign income tax deduction applied to the income you have received in KSA, paying taxes on the rest. Aramco does take out taxes for your income you receive here.
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Post by dlane on Apr 25, 2018 2:22:59 GMT
However, if you were employed the whole time prior to joining aramco, your US employer was taking taxes out of your paycheck using the tax bracket based on your pay at that time. Working at Aramco will put you in a higher tax bracket (due to expat allowances and gross ups). So, when you file your taxes, you'll owe additional money on your previous income, taxed at your new Aramco tax rate/bracket. Aramco only reimburses for taxes on company sourced income so you are on your own when it comes to anything earned outside of working for Aramco.
Usually not a large impact though unless you had a high salary prior to joining aramco.
Also your foreign earned income exclusion is prorated the first year unless you start Jan. 1, so you'll get some credit but you won't fully benefit until 2019.
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Post by vpainter on Apr 30, 2018 7:52:59 GMT
Aramco also has a company that will assist you with your U.S. taxes if you wish to use their services.
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Post by jusv on Aug 30, 2023 6:56:43 GMT
Hi vpainter, does Aramco have a company that can assist with Canadian taxes? TIA  |
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jrs
Senior Member
Posts: 379
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Post by jrs on Aug 30, 2023 7:34:05 GMT
I think vpainter has been gone from this forum for a few years now . Deloitte helps US expats file personal income tax forms but not sure if they or anyone else helps w/ Canadians
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Post by jusv on Aug 31, 2023 16:56:08 GMT
Hi jrs Thank you for replying! Vpainter is actually still active on this forum as he has replied to another post I had made recently. Just wondering if you're currently living in KSA at the moment? Would love to hear more about your experience so far. Where are you located in KSA now or previous? I've been watching some videos on Ras Tanura and it seems like an amazing place to live. TIA |
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