If you're still an American citizen, don't you technically still owe US to taxes on that "salary"? And since you're paying it as salary, I'm not sure that you're able to deduct any of the fees as expenses from what's owed.
The foreign tax credit is provided to prevent the double tax burden when your foreign source income is taxed by both the United States and the foreign country.
You just submit that you already paid taxes on that income to a foreign government and then no additional US taxes (to a limit, I beleive).
It's not that simple. There are a lot more details, but at a minimum you will still need to pay US taxes to the extent that the foreign government taxes at a lower rate. You'll also often still need to pay state income taxes.
