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Salaries at sovereign wealth funds (SWFs) in U.S. offices are not tax-free for employees who are not U.S. citizens or green card holders. Non-U.S. citizens working in the U.S. are still subject to U.S. tax laws, which means they are required to pay taxes on their income earned within the U.S.

However, if the SWF role is based outside the U.S., the tax situation can vary significantly depending on the country. For example, in the Middle East, salaries at SWFs are often tax-free for non-U.S. citizens, making them highly attractive. But for U.S. citizens working abroad, they still need to pay U.S. taxes on their income, albeit with potential reductions due to foreign tax credits or exclusions.

Sources: Value and Taxes: Breaking down the Pfizer- Allergan Deal, What is it like to work at a sovereign wealth fund?, The insanity of the US tax code: Bad Laws and Predictable Consequences

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