For example, in Rhineland-Palatinate, tax officials argued that Americans must show a “willingness to return” if they want to obtain their tax-exempt status, Kindler said. Marlies Kohnle-Gros (left party) and Marcus Klein of the CDU opened an investigation into the taxation of Americans in Germany in May 2020. MARCUS KLOECKNER/STARS AND STRIPES Marlies Kohnle-Gros, MEMBER of parliament for the Landtag in Rhineland-Palatinate, and her CDU colleague Marcus Klein examine whether there has been a change in official policy in the policy of the German tax authorities with American staff. They also asked how many U.S. military personnel have been targeted for orders and how much money has been seized in the past five years, they said last week in an interview. Yes and no. In general, military contractors will not pay foreign taxes on sites with SOFA agreements – but they are still responsible for U.S. taxes. Moreover, where a SOFA agreement prevents a military contractor from building foreign tax housing, it cannot be excluded from foreign income tax.

Historically, the sofa protected American staff from double taxation, but in recent years, some German tax offices have interpreted the contract differently. As you may know, U.S. citizens and green card holders must file U.S. income tax returns to report their global income, wherever they live and work. But what about foreign taxes? Often, the Status of the Armed Forces Agreements (SOFA) contain provisions that exempt military contractors from paying taxes to their host country. As a general rule, if this is the case, the agreement will say that the tax home of these expatriates is the United States and not the foreign country. USAREUR and U.S. Air Forces Europe are taking steps to raise awareness of the threat of double taxation. In a paper published by Syracuse University`s Institute for Veterans and Military Families (IVMF) in November 2019, it was found that “… military spouses [in Japan] intended to: Continue to work remotely for their current U.S. employer as soon as they are abroad, (1) may be required to pay a tax on foreign wages on their income and (2) to report their income abroad, “military considers have been advised to seek advice from facility commanders and their local jag office when planning or working remotely a U.S.-based company (p. 25).

The conclusion in the document also confirms the challenges for both joint sofa status and current or potential employers. U.S. Forces, Japan (USFJ) last week clarified issues related to tax legislation and work, status-of-force drug addicts (SOFA) who live abroad in Japan and who wish to work or work for U.S.-based private sector companies. Specific guidelines were asked based on questions asked on the social media platforms of the military community, at small group meetings of spouses and on local professional networks.