NEWS

US expatriates’ hopes for an end to double taxation gained new momentum on Wednesday, as a politician introduced a bill in the House of Representatives that would allow citizens living abroad to switch to a residence-based taxation model.

The bill, put forward by Representative Darin LaHood of Illinois, is in line with president-elect Donald Trump‘s campaign pledge to end double taxation for Americans living abroad, who for years have complained about the complicated and costly process to remain compliant with the tax system.

News of the bill’s introduction was first reported by The Wall Street Journal.

The US is the only major country in the world that taxes its citizens based on citizenship instead of residency. Americans living abroad still have to file taxes with the Internal Revenue Service, which can cost hundreds of dollars to complete even though about 60 per cent do not owe taxes, according to the Taxpayer Advocate Service.

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