How Do I Know If My Employer Is a Foreign Affiliate?

A foreign affiliate is generally defined as a foreign entity in which a US person or company directly or indirectly owns at least 10% of:

• The voting stock (for a corporation), or
• The profits or capital interest (for a partnership or similar entity)

This distinction matters when completing IRS forms such as Form 2555 for the Foreign Earned Income Exclusion or determining if certain informational filings are required.

What to Do If You’re Unsure

If you’re unsure whether your employer qualifies as a foreign affiliate of a US entity, consider:

• Asking your employer’s HR or finance department for clarification
• Reviewing any ownership documentation or parent company information
• Discuss it with your Greenback accountant, who can help determine the correct classification based on your employment details

Your accountant will use this information to ensure proper reporting and qualification for expat tax benefits.

If you haven’t registered yet, just click the “Get Started” button in the top right corner of your screen to jump right in.