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There is much confusion about what constitutes foreign earned income with respect to the residency location, the location where the work or service is performed, and supply of the salary or fee costs. Foreign residency or extended periods abroad belonging to the tax payer can be a qualification to avoid double taxation.

What difficulties as your 'income' tax has assortment of tax brackets each having its own tax rate from 10% to 35% (2009). These rates are placed on your taxable income which is income in excess of your 'tax free' funds.

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