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The USA at a Glance

Taxation and Business Culture in the USA

Business etiquette is essential for a successful career anywhere in the US.

Taxation

Income tax is comparatively low for people working in the US, even though it is due on both federal and state level. As a general rule, resident aliens – i.e. foreign nationals living and working in the US on a permanent basis – are taxed like US citizens.

Non-resident aliens who have been living and working in the US for less than 183 days a year are only taxed on their income from US sources. More information can be obtained from the Internal Revenue Service, which offers a special section on the taxation of foreigners working in the US.

Business Etiquette

Americans are known to be more direct than business people in other English-speaking nations, particularly the British. This by no means implies that rudeness is acceptable, of course. It, however, means that in business, especially on an executive level, a relatively brief, assertive and matter-of-fact style is preferable to ceremony, lengthy introductions, and beating-around-the-bush style conversation.

Having said this, the style of business is frequently informal, and colleagues and business associates often address each other on a first-name basis very soon after the initial introduction. Business gifts are not common in the US - they can even be received suspiciously since they might be misunderstood as attempts at bribery.

Business Women

Women are, at least nominally, on an equal footing with men. While most senior management and executive positions are still occupied by men, women feature strongly in middle management and on boards of directors. Thus, foreign business men coming from a different culture should not be surprised if their American counterpart and negotiation partner turns out to be a woman.

While chauvinist or overly soliciting behavior would be out of place, traditional gestures of politeness between men and women (e.g. opening the door for the woman) are acceptable. Similarly, foreign business women can expect to be treated as equals by their American business associates.

Business Invitations

Business lunches and even business breakfasts are more common than business dinners, as they make good use of free time. Socializing is not such an important aspect of US business culture. In general, hard work is expected and success is adequately rewarded, as competition, in particular at the top, is fierce.

Americans tend to be very hospitable, and it is not uncommon for people to invite business acquaintances round to their home for drinks or dinner parties. Sometimes, invitations are uttered casually at the end of a conversation. They should only be taken seriously if followed up by the host or if a specific date and time are given. An invitation can be regarded as a sign of appreciation and should never be ignored.