The "passport power"

Discussion in 'Holidays & Travel' started by chainbolt, Apr 17, 2015.

  1. chainbolt

    chainbolt Member

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    Interesting for those travelling the world:


    http://www.passportindex.org/byRank.php

    Australia is at place #9, not bad, but Canada and NZ rank better. :lol:
     
  2. Rezin

    Rezin Member

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    More to the point. :p

     
  3. MR CHILLED

    MR CHILLED D'oh!

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    Wow....I've always wanted to rank world passports by colour. My life is complete.
     
  4. sanjay

    sanjay Member

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    good thing I have a UK passport, too. :D

    interesting that Australia's passport ranks so low on the list, but perhaps not surprising given that we don't have great relations with the South American countries (who let in Canadians and British citizens visa-free but not Aussies).
     
  5. Zee

    Zee Member

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    Damn, both of mine are at 9...


    Z...
     
  6. mr sti

    mr sti Member

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    Just remember that many banks will refuse you as a client if you have a US passport. :)
     
  7. dave_dave_dave

    dave_dave_dave Member

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    What? Since when? If you are talking about Australia, then no.
     
  8. OP
    OP
    chainbolt

    chainbolt Member

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    True, but would anyway only be an option for foreign residents who want to open an account. The ranking is more for travelling as a tourist, as such you cannot open an account. Solution for foreign US residents is by the way using the subsidiary of an US bank.
     
  9. sanjay

    sanjay Member

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    im assuming this is because their tax laws operate on US citizens extra-territorially?

    such a ridiculous country.
     
  10. OP
    OP
    chainbolt

    chainbolt Member

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    Applies for all nations, including Australia. You are 100% subject to the tax laws of your home country abroad, and even if you reside in a country that has a treaty to avoid your "double taxation" with your home country.

    However the IRS (US tax authority) is in particular strict, and requesting from foreign banks extensive documentation about US clients. That's the reason why some banks hesitate to accept US clients.
     
  11. remi

    remi Member

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    Yeah I think that takes a big hit.

    Fly into Chile; US$130 Visa.
    Go into Argentina (US$100 reciprocity fee).
    Brazil (another big fee, plus surrender passport to embassy many days before travel, cannot do it on border).
    Paraguay (I think around US$30).
    Belize (around US$40).
    Probably missed some others in there.
     
  12. sanjay

    sanjay Member

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    my understanding was that Australia doesn't tax foreign-earned income, unlike the US, which does tax its citizens foreign-earned income, at the rate between the tax rate charged in the country where it is earned and the tax that would have been payable on it if it were earned in the US (i.e. US citizens working in hong kong get particularly fucked given the income tax differences between the two countries)??

    EDIT - wow, looks like I was wrong on that one: https://www.ato.gov.au/Individuals/...eas/Reporting-your-foreign-employment-income/

    second edit - still, you wont pay tax in Australia if your residency changes to foreign. which is what I was getting at. US citizens are still subject to US income tax even if they are living overseas permanently. I have had a few friends in HK (who are US citizens) come a cropper with this rule, and they keep having to pay the difference in the HK and US income tax rates back to the IRS every year, despite having moved out of the US years prior!
     
    Last edited: Apr 21, 2015
  13. Zee

    Zee Member

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    The yanks are incredibly good at screwing their citizens. Corporate citizens, on the other hand... Honestly, you're better off living in the third world, at least can also partake in the corruption...

    Z...
     
  14. OP
    OP
    chainbolt

    chainbolt Member

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    Most countries tax their citizens worldwide regardless where they live, or the "location" of their income. It's standard taxation procedure. To avoid that corporations and individuals are taxed twice, by their national tax authority and the country of residence, many countries have mutual "double tax treaties". It means that the country of origin is either waving taxation, or the country of residence gives a tax credit for taxes paid in the country of origin.

    For example: Australia and Japan have such agreement. I know for a fact form Australian friends living in Japan, that the Australian tax authority is not taxing them on income in Japan and in Australia. But the Australian tax authority is reporting Australian income to the Japanese tax authority.

    It is true that US citizens living abroad are taxed in the US including their income abroad, e.g. in Japan. In Japan they are again fully taxed, for both income in Japan and abroad. But such person is getting an equivalent tax credit in Japan based on the "double taxation treaty" between US and Japan.

    The problem for foreign banks is that the US IRS is insisting to report any accounts of US citizens and their balance to them. It means a (e.g.) Japanese bank has additional work to handle the account of an US citizen, and that's the reason why some non-US banks are hesitating to open accounts for US citizens living abroad.
     
    Last edited: Apr 21, 2015

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