Travel Reference
In-Depth Information
(
www.sjgrand.cn
)
, Dezan Shira & Associates (
www.dezshira.com
)
, and China Briefing
(
www.china-briefing.com
)
, among many others.
Unfortunately, living abroad doesn't necessarily exclude you from paying or at least claim-
ing income made in China, especially in countries such as the United States. If you are a
U.S. citizen or U.S. taxpayer, you have an obligation to report your worldwide income to
the IRS, whether you actually owe any tax or not.
It's important to know what your obligations are, and you may in fact find you qualify
for tax exemptions. Just some of the questions to ask include:
• Am I eligible for exemption? If so, how much of my income is exempt?
• Can I claim foreign tax credit? This is where the tax paid to the Chinese government on
your Chinese income is used as a deduction on your U.S. taxes. You will also need to
check whether or not this credit can be taken in conjunction with any exemptions you
have.
• Do I need to file a return for my spouse? What about if he or she is Chinese?
• What is a Foreign Bank Account Report (FBAR) and does it apply to me?
• What are my requirements for reporting foreign assets and what is Form 8938 (Statement
of Foreign Financial Assets)?
The U.S. embassy's Beijing website can be a good place to start getting information. The
embassy will also occasionally hold information events to notify you of your rights and
obligations. Taxpayer appointments can be made at the U.S. embassy in Beijing by calling
10/8531-3983.
For specific information relating to taxation in the U.S., simply visit the IRS website
(
www.irs.gov
)
and search for “U.S. Citizens and Resident Aliens Abroad.” You'll find the
full IRS guide for expats located under “Current Forms & Publications,” Publication 54
If you have the luck of being in Beijing on a company package, then you may well discover
you're able to put away a nice amount of money each month. Saving your money in a
Chinese bank account as a way of investing, however, isn't generally the recommended tac-
tic. Interest rates aren't particularly high, so your money won't be doing much work for
