living in israel and working for a us-based employer
DESCRIPTION
Post Aliyah Telecommuting: Living in Israel and working for a US-based employerTRANSCRIPT
Commuters & Telecommuters
Making Aliyah and Working for Employers Based in the US
Advantages
• Salary
• Continuity of employment
• Flexibility during the day
Challenges
• Working US hours
• Self-discipline
• Isolation from colleagues, in Israel and abroad
• Not integrating into the Israeli workforce and society
Tips for Making It Work
• Having the family’s support • Using “cutting edge” technology• Creating a home office environment • Maintaining balance • If you are the boss… • Volunteering
Negotiating With Your Boss
• Write a proposal to your employer, emphasizing the advantages
• Point out that working remotely is becoming increasingly popular
• Be flexible • Don’t be afraid to ask!
Taxation Issues
• The tax reform gives you a 10 year exemption on foreign-earned income
• Carefully structure your telecommuting arrangement
Scenario 1: Working in the US
• Taxpayer is physically working in the US
• Taxpayer does no work while in Israel
• Domiciled (center of life) in Israel• Aliyah after January 1, 2007
Taxes: Working in the US
• Taxes in the US– No foreign-earned income exemption– Pay State taxes, though a non-resident
• Taxes in Israel– 10 year tax exemption– No need to report income in Israel
Scenario 2: Working in Israel
• Taxpayer physically working in Israel
• Taxpayer does no work in the US
• Domiciled (center of life) in Israel
• Made Aliyah after January 1, 2007
Taxes: Working in Israel
• Taxes in the US– Claim either foreign-earned income
exemption or foreign tax credit– Do not need to pay State taxes
• Taxes in Israel– Pay Israeli taxes (revenue generated in
Israel)
Scenario 3: US and Israel
• Taxpayer physically working both in Israel and the US
• Domiciled (center of life) in Israel
• Made Aliyah after January 1, 2007
Taxes: Working in the US & Israel
• In the US– Claim foreign-earned income exemption or
foreign tax credit on a pro-rated basis– Pay State taxes on a pro-rated basis
• In Israel– Pay Israeli taxes on portion of income
generated in Israel– Do not need to report US generated income– Taxpayer can plan to take advantage of status
to apportion income– Work does not need to be apportioned based
on physical presence
Thank You…
• Thank you to Aron Epstein of KR Marsh CPAs for his assistance!
• Email: [email protected]
• Phone: (02)643-9258
• VoIP: (646) 201-9286
Questions? Ask NBN!
• Email: [email protected]
• Facebook: NBN Employment Dept. Group
• LinkedIn: NBN Employment Group
• Twitter: @RachelBerger
• Personal consultations in Israel and overseas