GoKunming Forums

expats paying taxes....

Alien (3819 posts) • 0

It is, and has long been, the case that the US government, anyway, does not usually bother with small-scale offenders who don't report overseas earnings from non-US businesses etc. overseas.

Geezer (1953 posts) • 0

US tax law is clear. Filing an annual tax return is required. I didn't bother to file returns for 4 years because I did not owe any tax.

I had a tax issue with the IRS and negotiated a settlement and paid down 90% of what I owed. Because I was not filing current returns The IRS seized 8600% of what I owed based on 1) Not filing return, and 2) I was not resident in the US.

My advice is file and pay your US taxes. In China, pay your taxes as it beats being detained and deported.

GoK Moderator (5096 posts) • 0

Many US citizens that I know have mentioned filing their China income with the US IRS, even if they would not be eligible to pay US taxes on that income. They have told me it is a legal requirement, albeit a pain in the neck.
US tax laws are NOT the same as UK, or most other countries, and so it is pointless mentioning them.

nnoble (889 posts) • 0

Fully aware of that, hence the question mark at the end of post. Only interested in learning about the different tax regimes, furthermore the OP was about 'Expats paying taxes...' Generally, finding things out is not pointless.

goldie122 (645 posts) • 0

Taejonwill, how long will you be here for? If just a short time, two years or so, then you should pay cause the US gov't sucks and requires it. However, I've been here several years and have NO intention of paying taxes nor have I paid them in the past. There are ways around it if you do your research. It's ridiculous to be expected to pay double taxes on your income (China and US).

Napoleon (1187 posts) • 0

What a tin pot regime you have over there. Taxes regardless if you're in the country using amenities or not?

Someone working in China is paying for someone to have a street light outside their house in Detroit. Utter greed.

Not even Mugabe is that ridiculous.

Geezer (1953 posts) • 0

@goldie122: There is an "AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME," executed April 30, 1984

www.irs.gov/pub/irs-trty/china.pdf

Reads in part:

"ARTICLE 19 (Teachers, Professors and Researchers) An individual who is, or immediately before visiting a Contracting State was, a resident of the other Contracting State and is temporarily present in the first-mentioned Contracting State for the primary purpose of teaching, giving lectures or conducting research at a university, college, school or other accredited educational institution or scientific research institution in the first mentioned Contracting State shall be exempt from tax in the first mentioned Contracting State for a period not exceeding three years in the aggregate in respect of remuneration for such teaching, lectures or research."

"ARTICLE 25 (Exchange of Information) 1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the Contracting States concerning taxes covered by this Agreement insofar as the taxation thereunder is not contrary to this Agreement, in particular for the prevention of fraud or evasion of such taxes. The exchange of information is not restricted by Article 1. Any information received by a Contracting State shall be treated as secret and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment, collection, or administration of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by this Agreement. Such persons or Authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions."

This applies to Americans only. You have to find the Tax Treaty for your comuntry.

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