working overseas 2

[purdue87]

has anyone done this? how much of a premium do you normally see for pay between middle east jobs and the equivalent us job?
thanks.

Thanks,
Scott

 

[HVAC68]

1. It depends on various things such as how desperate the middle east market requires you - i.e. are you a professional who is in demand in the ME market ?

2. Point 1 was a generic comment. However, taxes pay a major role and there is practically NO tax in the ME countries (at least most of them for sure).

HVAC68

 

[hokie66]

A US citizen is liable for taxation on his/her worldwide income.

 

[KristianS]

An evironmental engineer I know worked in Saudi about 5 years ago doing some consulting work for 3 months. He said he earned what he'd normally earn over a year during that time. Apparently if you work overseas and stay out of the US for 12 months you're not obliged to pay tax on the money you earned when you get back. He travelled for the next 12 months or so on the tax dollars he saved.

 

[patprimmer]

hokie

Does that mean US citizens are subject to double taxation.

My lady is a US citizen, but I am sure she only pays tax in Aus.


Regards
Pat
See FAQ731-376 for tips on use of eng-tips by professional engineers &

http://eng-tips.com/market.cfm

for site rules

 

[IRstuff]

You can get some credit for paying foreign taxes, at least, that's the case with foreign interest and dividends.

TTFN

FAQ731-376

 

[GTstartup]

You can avoid US income taxes if you stay out of the country for more than 330 days in a one year period. There is a limit, but the last tine I availed of this (1998) it was that you could earn up to $90,000 tax free. Don't know what the cutoff is now though.

 

[purdue87]

basically, i am just wondering everything else being the same, what is the premium for the middle east jobs.
thanks. scott.

Thanks,
Scott

 

[hokie66]

Pat,

You can exclude foreign earned income, up to US$87600 for the 2008 tax year. You can also take a foreign tax credit for taxes paid on other income like interest & dividends. I've lived in Australia for a long time, and haven't had to pay tax in the US in most years, but as a US citizen, I am still required to file a US tax return. A pain, and it gets complicated sometimes.

 

[SomptingGuy]

My daughter found a penny yesterday. Since she might have been conceived in the USA, I suppose we should be filling in a tax return.

- Steve

 

[KENAT]

purdue, in Defense the Gulf area Jobs paid a lot more than UK jobs, not sure quite how much more but a lot.

As to the tax thing, talk to an accountant. When I emigrated to the US from the UK we had trouble working it out, we asked our CPA and even he took a while to work it out and then there were a couple of options of how we could do it. Some countries have agreements with the US about reciprocal taxation or something like that, however I assume that means some don't, not sure where the Gulf states lie.

Posting guidelines faq731-376

http://eng-tips.com/market.cfm?

(probably not aimed specifically at you)
What is Engineering anyway: faq1088-1484​

 

[SomptingGuy]

KENAT, should you ever decide to come home. be carefull. The US gov want you to fill in tax forms before you leave. Bit of a bummer if you didn't know before you got home. So the US owes me a few thou, that I'll never see.

- Steve

 

[Neubaten]

I worked in the USA (non egineering related, btw) for 4 months, with a visa, and some months after I returned home I have this unexpected check in my mail from the USA goverment or something giving me back their taxes.

You know what that mean to a broke 21y old man.

I cannot even imagine a tax agency doing such bizarre thing as "giving back" anything, much less money. Did I caught a government employee on a happy hour or you guys live in wonderland?

 

[purdue87]

so, what do you think halliburton, bechtel, kiewit, baker hughes, sverdrup, etc. are paying in the middle east?

Thanks,
Scott

 

[stanier]

Chevron are just starting a $50 billion gas project in Western Australia. Yes you will have to pay tax here. What the USA wants you need a tax accountant to tell you.

The Middle East is not the only place in the world to work. But remember the additional money represents the hardship of being away from family and friends, in hospitable terrain, lack of other things to do but work, pressure of the job etc etc.

If you think the tax you pay is too much and does not leave you enough net pay, work harder and get more money and be left with more. I wished I paid a $1billion a year in tax for I would be left with plenty.

 

[purdue87]

yeah but the snakes are really bad in Australia. we have tv shows about them here!!

Thanks,
Scott

 

[GregLocock]

The taxes are worse than the snakes.

Cheers

Greg Locock

SIGlease see FAQ731-376 for tips on how to make the best use of Eng-Tips.

 

[Compositepro]

Neubaten, in the U.S. the tax system is designed to not anger the natives so much as is possible. Employers send the money to the government so that the native never sees it. They make sure that almost always more than enough is taken out of the paycheck so that the IRS does not have to come collecting (that might cause some unhappiness). Every year most people get a tax refund and that actually makes them happy! All the accountants that are required by the government and private companies keeps many people employed (though they do nothing productive for the economy).

 

[kelowna]

Great thread ... about taxes, but I cannot but notice nobody is actually replying to Scott's question.

Scott. I have not worked in the Middle East, but yes overseas. In the past I have got about 0% to 40% to 50% but it really depends on the market, place, length of assignment and conditions.

As you probably know, there are also other considerations, taxes (I ask for the company to pay local tax if any), living arrangements (decent & paid for), holidays, expenses, flights, working hours (if you have to work 10hX6d, suddenly the 40% premium results on a hourly rate cut!), health and life insurance, responsibilities... The usual.

I find that other conditions, rather than pay, will condition me saying yes or no to an assignment. I have run away from places that paid "tons" and worked happily for my normal rate in others.

 

[purdue87]

thanks kelowna.... that's basically what i was looking for.... there are jobs out there but most are overseas.

Thanks,
Scott