What Obligations Do Taxpayers Have Under US Expat Tax Hong Kong Compliance?

Posted by Hayden T Joseph & Company on July 8th, 2019

Whether you’re living in Hong Kong as an expatriate or are merely spending some time for business purposes, you have to overcome the US expat tax Hong Kong obligations timely and accurately. Unfortunately, the penalties for a failure to comply with tax payment, filing or disclosure of any exempt income are severe.

Therefore, it is recommended wise to seek the professional tax consultant help who is well-versed in the US tax Hong Kong issues faced by an expatriate. To begin with, first, come across all those aspects which will make you become eligible to pay taxes while living in Hong Kong as an expat.

• US expat have an obligation to pay taxes on their income earned in the Hong Kong territory

The United stated rules out every other developed nation. Among all, US is the only country in the world that taxes on the basis of citizenship while many country taxes where the financial transactions occurred. It is the citizenship effect of US residents that they are taxed on the basis of their global income. Thus, for a US resident, the income is always taxable in Hong Kong.

• US taxpayers must file offshore account disclosures

This is the second mandatory obligation over US taxpayers, which they have to overcome. Being an expat they need to file offshore account disclosures like FBAR, FATCA with the help of US tax advisor Hong Kong because it is a very technical reporting which needs a professional experience. Failure to file both the FBAR & FATCA can impose heavy fines.

US taxpayers living or working in Hong Kong have an array of tax concerns as well as obligations which they need to comply with. The failure to comply with any single obligations can cost them a fortune. So, before settling your business or receiving any income in Hong Kong make sure you have hired the right tax advisor to drop down your chance of being recognized as a tax defaulter.