Re: Transfer of Residence (USA to Pakistan)
Oh wow....just finished reading this thread. Keep us updated, Firenze.
Re: Transfer of Residence (USA to Pakistan)
I am planning to move to Pakistan too inshaAllah by the end of this year or early next year. Your experience will be very helpful to me. Lots of questions are lingering in my mind. I am not a US citizen or Green card holder (here on H1B).
Here are my questions to start with: 1. Do you have to close/terminate your Social Security once you leave the country for good? 2. What about taxes? I might leave the country in January 2013. That means I will be earning income in Jan 2013. Will I have to do the 2013 tax returns too?
1) Nope. I don't think so.
2) Talk with your accountant, you can receive your w-2 electronically and file it online.
If you are not going to come back then your don't need to worry about social security & taxes.
Unless you surrender your citizenship or permanent resident status, you are liable to pay uncle Sam taxes on overseas income.
First 80K is tax free but any amount over that is taxable.
Unless you are doing an 8854
Re: Transfer of Residence (USA to Pakistan)
I remember reading 92k
You could be right, it was 80k a few years ago when I was discussing a middle east role.
Re: Transfer of Residence (USA to Pakistan)
Unless you surrender your citizenship or permanent resident status, you are liable to pay uncle Sam taxes on overseas income.
First 80K is tax free but any amount over that is taxable.
Unless you are doing an 8854
Exactly right! When my bro-in-law and sis moved back to Khi and then Dubai after living in Dallas for 7-8 years, they did not realize that all of my bro-in-laws income from his established family industries, sales and purchases of properties in dubai and business in pak & dubai would be taxable income since he was now a US citizen! Unfortunately, he got incorrect advice from his accountant here in Dallas, and figured since they sold the house here and were not maintaining any ties to the US, they were exempt from taxes...WRONG! They got slapped with over $200K in tax penalites and fines! It took a team of int'l tax consultants almost 2 years to sort through the mess and negotiate down the fines and penalties to a manageable amount he has now payed off.
Re: Transfer of Residence (USA to Pakistan)
I remember reading 92k
You could be right, it was 80k a few years ago when I was discussing a middle east role.
It is 92K now I believe
Re: Transfer of Residence (USA to Pakistan)
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KC, Technically if any of the property or business was in his name even before he moved back he would have been liable, from the moment you become a perm resident your worldwide income is subject to US taxes, with allowances built in to prevent double taxation if taxes in other jurisdictions are higher or differentials if taxes in those locations are lower.
It is getting more scrutiny than before now, a few years ago the congress passed some laws to consider the subsidies for housing and education etc as taxable income too. I had to run the numbers for myself to pass on some international roles. The final incremental gains were not worth the hassle of moving.
Re: Transfer of Residence (USA to Pakistan)
^ yup, and that's what tripped him up. Bro in law's family is very old and established pharma giants in pak & asia/middle east. he had taken semi-retirement while they lived here in Dallas for the 7-8 years, but he sits as director over many of their entities, and did not realize that he was listed as owner/director in other company holdings (they are a total of 8 brothers) of other ventures.
It was such a convaluted mess.
Re: Transfer of Residence (USA to Pakistan)
Any update Firenze? Looking forward to hear more from you as I am also contemplating such move....
Re: Transfer of Residence (USA to Pakistan)
^ Concerned about the effects of immoral sexual atmosphere of the schools on children ?
Re: Transfer of Residence (USA to Pakistan)
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Re: Transfer of Residence (USA to Pakistan)
Any update Firenze? Looking forward to hear more from you as I am also contemplating such move....
so far so good, maybe because wify is not here yet :D
I will updating the thread in the future
As of now:
1) didn't face any problems at all with customs, i used my contacts and had so-called protocol at airport what it did was they pick me up from plane door and breeze through everything (i even managed to get out the LED for 20K RS)
2) Its quite hot here even with ACs in home, cars & factory, will require few months to get use too.
3) Grocery is on per with rates in USA, i didn't find much difference
4) my estimate of living comfortably went higher considerably from 80K RS to 150K RS (hub/wife), with two kids it should be 200K RS. (including saving of 25k per month)
5) I am enjoying ramadan better here, it felt great every time to hear the Aazan (read Aazaans) in every corner.
6) As of now i am going to work in textile industry, mainly slowly taking over responsibilities from dad but in a year or so will be moving into IT industry with opening of software house for local ERP development.
That's all for now.
Re: Transfer of Residence (USA to Pakistan)
so far so good, maybe because wify is not here yet :D I will updating the thread in the future
As of now:
1) didn't face any problems at all with customs, i used my contacts and had so-called protocol at airport what it did was they pick me up from plane door and breeze through everything (i even managed to get out the LED for 20K RS)
2) Its quite hot here even with ACs in home, cars & factory, will require few months to get use too.
3) Grocery is on per with rates in USA, i didn't find much difference
4) my estimate of living comfortably went higher considerably from 80K RS to 150K RS (hub/wife), with two kids it should be 200K RS. (including saving of 25k per month)
5) I am enjoying ramadan better here, it felt great every time to hear the Aazan (read Aazaans) in every corner.
6) As of now i am going to work in textile industry, mainly slowly taking over responsibilities from dad but in a year or so will be moving into IT industry with opening of software house for local ERP development.
That's all for now.
best of luck.
Re: Transfer of Residence (USA to Pakistan)
200k is too much :( I don think there are jobs in Pakistan that pays 200K.
Re: Transfer of Residence (USA to Pakistan)
Unless you are a factory/business owner.
Re: Transfer of Residence (USA to Pakistan)
200k is too much :( I don think there are jobs in Pakistan that pays 200K.
I know people in IT field who are making over 150K RS. Even college/university professors are making over 100k.
I suggest you to setup a business or have plan for it before your land.
Re: Transfer of Residence (USA to Pakistan)
What if i dont have an aptitude for business, what are my options? by the way I have a Masters in CS from a reputed US University and 7 years work experience, I might try my luck in academics, what do you think since you seem to have alot of knowledge.
Thanks for your help again Firenze.
Re: Transfer of Residence (USA to Pakistan)
What if i dont have an aptitude for business, what are my options? by the way I have a Masters in CS from a reputed US University and 7 years work experience, I might try my luck in academics, what do you think since you seem to have alot of knowledge. Thanks for your help again Firenze.
My cousins went to Pakistan after getting their MISM from US and some experience. One of them is now a Professor in university of punjab and the other was an assistant professor. They were both making more than 1.5 lakh a month.