Foreign Language Translation and Foreign Income and Taxes: Section 911

We’ve blogged about translating financial double tax treaties. According to section 911 of the U.S. Tax Code, a qualified individual is able to exclude foreign earned income and housing costs amounts from gross income. 911(d)(1) defines a qualified individual as an individual whose tax home is in a foreign country and who is either a U.S. citizen with bona fide resident status in a foreign country for an uninterrupted period of an entire taxable year, or a U.S. citizen who during a period of 12 consecutive months is present in a foreign country(ies) for at least 330 days.

Interestingly, an individual who qualifies for this exception must still file a tax return with the US.

In their individual return they must claim the exception and be prepared to document their foreign residency with proof. To do so, it is advised that all documents pertaining to one’s foreign

residence – including rental agreements, business contacts, etc. – include a foreign language translation. Further, as the individual will likely be required to pay taxes in their country of residence, one should review any double tax treaties that may exists. This too will require a foreign language translation of the applicable laws.

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