US tax advisors for US expats in Hong Kong

Along with FATCA and FBAR reporting, these are the specific Hong Kong IRS tax issues our team of tax attorneys, CPAs, and tax preparers assist our clients with.

Common tax issues we encounter for US expats in Hong Kong

• Income from closely held corporations, where all parties might not be US persons and may be required to file precise tax filings.
• Acquisitions resulting in significant capital gains, and ways to avoid them.
• Gifting and inheritance issues.
• “Foreign” mutual funds.
• How to properly gift to a non-US spouse.
• “Foreign” pensions.
• FATCA and FBAR reporting.

Are you a US person living in Hong Kong?

The US taxes its persons on a worldwide basis. So what you earn in Hong Kong, even if it is taxed by the Hong Kong taxing authority, is subject to additional taxes by the IRS. This is true even if you have a “tax-free” account in Hong Kong. However, you are entitled to a credit for taxes paid. In the alternative, there is a foreign income exclusion which will exempt a portion of your income from income taxes.

Are you an Hong Kong person living in the United States? (Visa/Substantial Presence Test)

If you are a Green Card holder you are subject to universal taxing jurisdiction on all your income, anywhere in the world. If you are a visa holder the rules are a bit more complicated about when universal taxing jurisdiction is triggered.

Foreign Earned Income Exclusion

Citizens and residents living and working in Hong Kong may be entitled to a foreign earned income exclusion that reduces taxable income. In addition, you may exclude housing expenses, but with limits. There are limits and special rules about who qualifies for the exclusion, and we can help you understand if you qualify.