American immigration tax policy

There is no need to worry about double taxation in American immigration tax. Why is this? Let's start with the immigration tax policy in the United States. This news is helpful to you who are preparing to immigrate to the United States.

Although the immigration policy of the United States has not yet rectified the amount of American investment immigrants, the recent tax problems of American overseas immigrants have "frightened" a number of overseas high-asset investment immigrants. To some extent, it has affected the application for immigration in the United States.

In order to avoid double taxation in many countries, China and the United States signed the Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion on Income in 1984. According to the agreement, China citizens with green cards have paid taxes in China at the China tax rate, and they can be exempted from the corresponding tax obligation by providing relevant tax payment certificates to the United States. In view of the different tax rates in the two countries, if China has more tax than the United States, it will not be repaid; If it is less than the United States, it needs to be returned.

According to American law, before April 15 every year, taxpayers should truthfully fill in the income tax return form of the previous year and send it to the service center of the IRS in the state where they are located, and pay all taxes within the prescribed time limit, or provide relevant certificates for paying taxes in other countries. Because the macro tax burden of the United States is higher than that of China, and China has been lagging behind in tax collection and management of non-residents, tax avoidance and tax evasion are common among these people. Therefore, if American green card holders truthfully declare their overseas property status, their tax burden will definitely increase.

China people don't need to be overly nervous about this bill. This is just an equity plan adopted by the United States to cope with financial difficulties. If it is strictly enforced for a long time, it will not be conducive to attracting overseas assets and immigrants, so the US government will also grasp the discretion. The new bill mainly focuses on "income", such as direct investment income, indirect investment income, operating income, property capital income, etc., excluding real estate. China green card holders don't have to worry about paying taxes on real estate in the United States, but they have to pay taxes on capital gains from real estate transactions.

An accountant who has run an accounting firm in the United States for more than 20 years told this newspaper that generally speaking, if you have paid taxes overseas, you can reduce or exempt the federal tax in the United States, but the state taxes belonging to the States in the United States usually have to be paid back.