US Taxation of Hong Kong Income

US TAXATION OF HONG KONG INCOME

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▪ It doesn’t matter whether you are a Hong Kong

citizen and relocated to the United States, or a US citizen who has relocated to Hong Kong.

▪ There are various IRS tax-related issues an individual (carrying Hong Kong income) will have to access- depending on the type of income they are earning.

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Tax on Worldwide Income â–Ş The most important aspect of the

streamlined process of Hong Kong US tax is that the United States taxes payers based on their earned worldwide income. â–Ş So, if you are US citizen and living in Hong Kong for any purpose, you need to aware of the fact that the income you earn abroad is going to be taxed in the United States.

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What will be the taxation process if I am a resident of Hong Kong?

Although, the United States applied its tax rules on US citizen status, which includes only the below-three situation▪ S. citizens or aliens ▪ Legal permanent residents ▪ Non-citizen individuals who meet the

substantial presence test Visit us:- http://www.htj.tax/us-tax-irs-hong-kong/

Eligibility for foreign earned income ▪ If you are US citizen but residing overseas you may

become eligible for the Foreign Earned Income Exclusion (FEIE), by filing the IRS Form 2555.

▪ Once you get qualified under the exclusion category of foreign earned income, then a certain figure will be exempted from US taxation.

▪ In simple terms, if you work overseas in Hong Kong and comes under the FEIE requirements, then you would not owe any tax to the United States for a certain amount (amount fluctuate every year) – even if it was tax-free in Hong Kong.

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Tax-Free Income Provisions in Hong Kong and the United States â–Ş Unlike the United States, many countries have

provisions for tax-free income on certain items such as interest, capital gains or dividends.

Whereas the United States offer some tax exemption interest at the state level. â–Ş However, the United States does not cover the tax-free status. Therefore, if you earned income on interest or dividends, you may require paying tax on that amount in the United States.

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Contact Us ▪ Address:-

1103-5 Allied Kajima Building, 138 Gloucester Road, Wanchai, Hong Kong ▪ Postal code: 518023 ▪ HK: +852 8172 1040