As previously stated, the LOA gave away any chance of one earning "EXPAT" tax status/benefits under IRS rules --- however, I believe the IRS also requires you to spend at least 335 days outside the US every 12 months to qualify for EXPAT status (....this may be prorated across consecutive tax years).

Thus, one couldn't "commute" to an FDA and then return to the US on their days off and expect to qualify for EXPAT tax status like other US citizens who actually work and reside abroad.

 

So Fedex would lose the expat benefit not the commuter who is under the LOA "normalized" tax rules.

 

You guys are missing the point with respect to the foreign income tax exclusion, but that's understandable as you haven't dealt with it first hand.

Point: It does not matter one bit how much time you spend in the US.

There are two ways to qualify for the foreign income tax exclusion. Way one, the physical presence test, which is the 335 days outside the US that a previous poster referred to.

Way two, the bona fide residence test. This you qualify for after you have spent 1 full year working outside the US, regardless of how many days you spent in/out of country.

For anyone coming from the states, PriceWaterHouse files an extension for you and does not file your income tax return until you meet the bona fide residence test.

Example:

Say you showed up as a HKG based pilot in September of 2009. Regardless of how many days you spend in the US from September 09 until September of 2010, you WILL qualify for the foreign income tax exclusion on September 30, 2010. PWC files your 2009 tax return in October of 2010, after you have qualified for the exclusion based on the bonafide residence test. So no matter what month you show up in HKG and where you spend your vacation and days off, one year later, you WILL qualify for the exclusion based on the bona fide residence test. Plenty of reading about it here:

Foreign Earned Income Exclusion - Bona Fide Residence Test

As another poster pointed out, it really doesn't matter one way or the other to the pilot, as FedEx has taken away your individual ability to financially benefit from the exclusion; they do.

 

More accurately, we let them take it away from us when we voted for the FDA LOA. Those of us who actually read the FDA LOA and voted against it were out-voted by the vast majority in MEM who continually act without educating themselves on the facts.

 

Are you kidding me? No wonder a ****ty LOA passed. The FIE and tax equalization were a huge deal when we were voting on this. Now more than a year later you think you'll still get a FIE?

The lack of participation on the 'basic knowledge' level is disheartening. Especially when this deal passed at 68%.

Take it as a lesson for future 'deals', all I'm sayin...

 

maybe.....just maybe.....the recent rumors of "improving" the LOA might have a sliver of truth?

anyone heard any of this?

company still wants to open a Euro domicile, but can't except CDG under current LOA.

so, they are forced to re-negotiate a new LOA for CGN or FRA or Zurich, or??.......with possible IMPROVEMENTS to the existing one (that would cover HKG as well)

2 birds w/one stone - cover a new location in Euro.....and entice more folks to bid the MD11 to HKG.....while also repairing some of the damage caused to the folks already in HKG??

is it even a possibility?.....wishful thinking?....

discuss.......

 

I think this is EXACTLY what they are going to do. All you HKG guys should be hammering your reps concerning what you need/want.

Let's hope that we all go into whatever LOA 2 agreement with eyes a little more wide open...

WM

 

All FDX shareholders and executives who have just cashed in on mega-options are very grateful to you HKG-based folks who have graciously donated your "tax equalization" fees/expat savings to offset the French taxes of our (non-existent) CDG domicile. Way to take one for the team, guys!

 

My guess is that they maybe only donated the interest the Company earned on the deduction they held over the past year. I believe they needed the take equal scheme to guarantee that they had the cash to pay HK or China the tax that they were asking.

Having said that, we never should have surrendered our right to the tax break; at least not until we negotiated a much better LOA.

Footnote: It is interesting that we have folks who think we still get the break. Lesson; fool me once, etc., etc.!

 

No, it is just interesting to see/hear just how many people voted for the LOA without reading, or if not that, reading but not really understanding it. The previous MEC said vote for it... it will not affect me... it will go senior... it was the best we could get/do...