OK, folks, it's clear to me that many of you still don't get one big part of why this LOA is such a screw job. First: get it straight here -- YOU AREN'T PAYING HKG OR FRENCH TAXES. Here's what happens: FedEx has to pay to the foreign gov't., as a CODB (Cost Of Doing Business), a sort of "business tax" that is equal to the tax rate on the payroll of expats FedEx stations in the FDA. But what DOES happen is that before even bidding an FDA, you are required to give the company -- NOT the foreign gov't., but the company -- permission to keep for itself an amount of money out of your check. This amount is figured by first having PW do your US taxes, and you will get the FEIE when PW does your taxes. BUT! PW then figures up what your tax WOULD HAVE BEEN if you lived in the States, plus any state tax, plus any municipal tax. PW will take that hypothetical total, then will subtract your actual tax bill, and the difference between those two figures goes to FedEx, because as a condition of bidding an FDA, you have already given FedEx permission to keep this amount. So you can forget about deducting any HKG tax from your federal tax, because YOU AREN'T PAYING THE HKG TAX. FedEx had to pay a like amount as a cost of doing business, and you have reimbursed the company for it. This reimbursement to the company is NOT tax deductible. So -- you are effectively paying the company for your assignment to the FDA. That money is NOT going to the foreign gov't.

Can you hear me now??