Comments by "Steve Davenport" (@stevedavenport1202) on "Feli from Germany"
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Most countries have bilateral tax treaties with each other. These apply to businesses, mostly. So, let's say a Canadian producer of widgets, whose operations are 100% in Canada, sells millions of dollars worth of merchandise to customers in the USA and Mexico. They would not have to pay income taxes to the USA or Mexico.
As for individual US citizens living and working in a foreign country, yes, they have to pay income taxes on those wages. However, there is an exemption on the first 100,000 dollars of income.
What this means, practically speaking, is that most US citizens working outside of the US, wont end up paying taxes to the IRS since most jobs don't pay 6 figures.
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