How does taxation work if I am paid by my parent company abroad?

If you live in the United States on an L visa and receive your salary from the parent company overseas, the central question is your tax residency status. Those treated as tax residents typically must report worldwide income, not just what is paid within the country.

This means that even when payment comes from an overseas parent company, your earnings may be subject to U.S. taxation and must be reported to the IRS, the U.S. tax authority. Depending on your situation, there may also be obligations to report foreign bank accounts and assets held abroad.

Two factors commonly ease the tax burden:

• Tax treaties to avoid double taxation between your home country and the U.S., where they exist.
• Foreign tax credits that recognize taxes already paid outside the country.

The rules vary by country of origin and individual profile, and obligations in your home country may coexist with U.S. requirements. For this reason, the safest approach is to consult a tax accountant or tax advisor with expertise in both tax systems and to verify current requirements directly with the IRS.

About the author

Victoria Harper

Editor-in-Chief

Meet the author

As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.