Form 8854: Initial and Annual Expatriation Statement
In the past few years, there has been an upsurge in US citizenship renunciations. In a recent Forbes article[i], between 2005 and 2009, less than 2,500 people renounced their citizenship. Between 2010 and 2020, this number went up to 36,840. The reasons behind such renunciations could be political or personal and irrespective of the reasons […]
Selling your home? Any way to save in U.S. taxes?
Planning to sell your main home but concerned about the U.S. tax on the capital gain from the sale of your main home? You may want check if you can utilize the sale of home exclusion before selling your main home. What is the sale of home exclusion? If you are a U.S. citizen or […]
Do I need to file FBAR or Form 8938?
If you have a foreign bank account(s), it is likely you’ll have FBAR and Form 8938 (Statement of Specified Foreign Financial Assets) filing requirement. Below are answers to a few basic questions related to those forms. What is FBAR and 8938? FBAR: The FBAR (Foreign Bank Account Reporting) formerly called the Report of Foreign Bank […]
Happy 10 Year Anniversary – American Pacific Tax
A few pictures from our celebration!
Anything missing or need correction in your Hong Kong tax assessment?
If you have timely filed your Hong Kong individual tax return for the year 20xx/20xx, you should have received/ will receive your Hong Kong tax assessment. Generally, the tax assessment should match with tax returns that you have filed to the Inland Revenue Department (“IRD”) and the employer’s return filed by your employer(s). However, you […]
Should You Claim the Itemized Deduction Instead of Standard Deduction?
This is one of the most common questions that our clients will ask. You should claim itemized deductions if the sum of the itemized deductions is greater than the standard deduction. We have listed 4 of the most common items our clients in Hong Kong have claimed. Medical and Dental Expenses Property Taxes Home Mortgage […]
Holding Over of Hong Kong Provisional Tax
In times of economic difficulties or when cash flow is not consistent, you may apply to the Hong Kong Inland Revenue Department for a deferral of tax payment to help you get through financial difficulties. For example, a large one-time bonus not expected to be receive in the next year. One option is the holding […]
Looking to Reduce your Hong Kong Salaries Tax Liability?
Taxpayers are always searching for ways to reduce their tax liability. Here are some ways to reduce Hong Kong tax liability on your individual income tax return: Claim for deductions under salaries tax (i.e., outgoing and expenses, self-education expenses, approved charitable donations and contributions to the Mandatory Provident Fund (“MPF”) or Recognized Occupational Retirement Scheme). […]
How to avoid US tax on worldwide income?
Foreign persons (not US citizens or Green card holders) or nonresident aliens (NRA), risk becoming subject to US tax on their worldwide income if they spend too much time in the United States of America and meet the substantial presence test. However, they may still be able to escape US tax on their worldwide income […]
Taxes Applicable on Self-Employed Income
Post-pandemic world has seen more and more people started working for themselves either by setting up their own business or working as a freelancer which potentially triggers self-employment tax. In this short article we will briefly look at a few basic questions of the self-employment tax: Who is considered self-employed? Generally, a taxpayer is considered […]