How are taxes handled if I am paid by the parent company abroad?

When you are in the United States on an L visa and receive your payment from the parent company abroad, there are some important points to consider regarding taxes and your tax situation. It is essential to understand the tax frameworks of both your home country and the United States, as well as to strictly follow local laws and seek guidance from reliable experts.

First, it is worth highlighting that living in the United States and carrying out your activities under an L visa (usually intended for executives or transferred professionals), you may be considered a tax resident for income tax purposes. In this case, even if your salary is paid by the parent company abroad, you must report your income to U.S. tax authorities, such as the Internal Revenue Service (IRS). This means that your worldwide income may be subject to U.S. taxation.

The rules may vary depending, for example, on whether your home country has a tax treaty with the United States, which can avoid double taxation or establish tax credits that reduce the impact. It is important to understand that if you are considered a tax resident, you will be required to report all of your income, regardless of where it originated. For example, there is a need to complete specific forms to declare income derived from abroad and comply with foreign bank account reporting requirements, such as FinCEN Form 114 (FBAR).

At the same time, you may still have tax obligations in your home country, depending on local rules. For this reason, many professionals choose to consult an accountant or tax advisor who understands both U.S. law and that of the parent company”s country to ensure all obligations are met without issues.

Always remember to strictly follow United States immigration and tax laws, and be cautious with information promising miracle solutions or guaranteed results. It is wise to seek companies or professionals specialized in the subject and avoid scams or marketing campaigns that do not offer proper and personalized guidance. This caution is essential for you to keep your situation regularized and avoid future complications.

In summary, if you receive your compensation from the parent company abroad while in the United States on an L visa, it is very likely that you are subject to U.S. taxation on your worldwide income. Make sure to seek qualified professional advice tailored to your specific needs and always observe the importance of complying with the various legal obligations to preserve your immigration and tax status.

Victoria Harper

Editor-in-Chief

Meet the author

Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.