As a general rule, wages earned by nonresident aliens for services performed outside of the United States for any employer are foreign source income and therefore are not subject to reporting and withholding of U.S. federal income tax. U.S. Labor Department says it’s Legal

Can a US citizen be an employee of a foreign government?

Services performed by a duly ordained, commissioned, or licensed minister of a church, but only if performed in the exercise of the ministry and not as an employee of the United States, a U.S. possession, or a foreign government, or any of their political subdivisions.

Can a US company hire a foreigner living in Argentina?

“A U.S. company might want to hire someone in Argentina who can work from home, but the work would be for the U.S company (and not be related to any work in Argentina).” The All Business website clearly states no immigration visa or Green Card is necessary if a U.S. employer hires a foreigner living abroad: “Understand visa requirements.

Who are US citizens and resident aliens employed abroad?

These include services performed by ambassadors, other diplomatic and consular officers and employees, and nondiplomatic representatives. They do not include services for a U.S. or Puerto Rican corporation owned by a foreign government.

Can a US citizen set up a foreign corporation?

Part of the reason for the absence of any tax requirements is that many individuals set up foreign corporations for reasons other than their tax benefits. Yes, you can get tax benefits from a foreign corporation if structured properly, but if you are a full-time US resident living in the United States, those tax benefits will not apply to you.

How are foreign workers treated as US citizens?

Such treaties often state how workers from one country visiting or living in the other country are to be treated for tax purposes. The US often allows foreign tax paid as a dollar for dollar credit against the US taxes of a US citizen or green card holder on IRS Form 1116.