are we suppose to pay tax on money earned from another continent?

Question

This is crazy as I am paying tax for the money I make from overseas with companies from overseas also. Can I hear some suggestions of how I can prevent all this?

Answer 1

Wrong country Mahal. This is posted in the UK section.

You need to establish where you were resident. If non-resident, you shouldn't have much of an issue. If resident, you still have to declare the income but you will get a foreign tax credit. The UK is relatively generous compared to other countries in giving relief for taxes paid to other countries.

If you are struggling to file your SA return get to a CA now.

Answer 2

This is "foreign earned income" and is taxable but the rules are different. I've never handled them, so you'll have to look them up. If you're married and file a joint return, you may want to look up the rules on "worldwide income" as well.

You will also get a "foreign tax credit" if you're paying taxes to a foreign government.

www.irs.gov (follow the links to "forms and publications".)

Answer 3

The only way to prevent it is to change your domicile to a country which has a more sympathetic tax regime. If you don't mind living abroad, it would solve the problem.

Answer 4

yes if you are domicled here and the monies are being received through your UK bank account, you must declare them during your income tax computation.

i personally would move to Jersey or Guernsey as they have very relaxed tax laws.