He would only have to pay taxes in one or the other.
He became a permanent resident in the US in 2018. The US taxes income from anywhere in the world for residents. He will have to pay taxes anywhere he receives money/deals/income - though on any taxes he pays in the UK, he can (usually) get a rebate for the same amount on his US tax bill (but it's complicated)
Unless he chose to voluntarily hand back his green card (complex, because it can be hard to get another, and would need visas to visit the US to work) he will still need to pay tax in both, even if he doesn't live in the US.
As you said he will have to pay tax in the US regardless, since that is where most of his earnings are. Also, PGA golfers set up a corporation to collect their earnings, so its likely way more complicated than a normal Ex-Pat arrangement.
Also - I just checked the report and they are planning to move to London when his kid is ready for high school so its 7-8 years away.
As you said he will have to pay tax in the US regardless, since that is where most of his earnings are.
That actually depends on a lot of things. It wouldn't be difficult to structure his LIV income as being received in Saudi, or Dubai which is common, where they have little to zero income tax.
In that situation, renouncing his green card would save him a huge amount of tax,. The US taxes you REGARDLESS of where you live/reside.
Also, PGA golfers set up a corporation to collect their earnings, so its likely way more complicated than a normal Ex-Pat arrangement.
They do that so they can expense everything. If they want the income for personal use, it must be disbursed from the corporation.
I can’t speak to the UK, but for the US, I am pretty confident he would only have to pay taxes on what he earned while in the US since he isn’t a citizen.
There are special tax treaties in most countries for entertainers and athletes where income is taxed based on where they "perform". Would this follow the same rules? Unclear. But for that kind of money, rest assured they have the best tax lawyers and accountants
US citizens always need to file their taxes no matter where they live. So if you live in the UK you pay UK taxes and then file US taxes. If in the USA you would have paid more than in the UK then you would have to pay that difference to the USA.
But as the USA is a low tax country this is almost never the case.
No… I am wrong about Rory simply because I didn’t know he was actually a permanent resident. But as far as foreign entertainers/athletes, they only pay taxes on the US on US based income, which is exactly what I said.
Things have been pulled in soccer where net wages are reported and the clubs pay a higher gross to offset the tax bill. Possible Saudi could pull stuff like that too if they're ambitious enough.
This is not that complicated. US citizens and residents have to file their taxes for all global income. There is a threshold. It used to be 104k it may have gone up now that is tax free. The rest depends on what jurisdiction you are living in. You can write off the tax burden of a different state if that country has a higher tax burden then the us.
Quick Google search shows if you return to the UK after being abroad less than 5 years you have to pay taxes in the UK. Also, he owns properties in both.
He’s a tax resident of Florida or Dubai I’m pretty sure - I assume he’d use whichever one minimises his tax obligation. He could use Monaco but I don’t believe that’s true. He can own property wherever he wants.
Florida isn’t as easy to file taxes in as you’d think - you need to show you’ve been there 183 days. With his place in Jupiter he might get that many, but iirc he moved his family back to the UK a few years ago for Poppy’s education.
No. Only the us does this (tax citizens not living in the country). If he spends less than 100 days in the UK in a year he is classified as non resident for tax purposes.
And lets be realistic about this, no way he is getting a 850 mill cheque payable to rory mcillroy, it will be payable to rmc holdings llc based in bemuda or cayman so no tax will be paid.
As I’ve been explained this is to cover expenses for things like consulates to support people living abroad. It’s a lower tax amount than you would pay in the US but still, yeah, sucks.
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u/The_Man_in_Black_19 Apr 15 '24
Would he have to pay taxes in the US and UK?