U.S. EXPAT TAX GUIDE – SAUDI ARABIA
What is the General Organization for Social Insurance (GOSI)?
GOSI, or the General Organization for Social Insurance, is Saudi Arabia’s social security program. Both employers and employees contribute to it, covering benefits like retirement, disability, and unemployment.
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How do GOSI contributions affect my US tax return?
For US citizens in Saudi Arabia, contributions to GOSI can be claimed as a credit on their US tax returns, potentially reducing the amount owed to the IRS.
Why is the absence of a totalization agreement important?
Without a totalization agreement or tax treaty between the US and Saudi Arabia, American expats can still claim GOSI contributions as a credit on their US tax returns.
How can I claim GOSI contributions on my US tax return?
When filing your US tax return, you can include your GOSI contributions as a credit, similar to claiming a deduction for social security payments, despite the absence of a formal agreement between the two countries.
Why partner with a specialist Expat accountant?
Living outside of the US can make your tax filing requirements complicated. To ensure you pay the minimum amount of taxes, it’s critical to work with an accountant who understands every aspect and avenue for reducing your tax liability. We have a dedicated team of tax accountants who work exclusively with US expats earning and investing in Germany. Partnering with a specialist expat accountant can help you navigate complex tax regulations and optimize your tax situation.
