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U.S.-China Tax Issues for Dual-Status Taxpayers: Tax Planning and Compliance Requirements, Treaty Operations

Capital Controls and Asset Migration, Pre-Immigration Planning, Special Considerations for U.S. Taxpayers Working in the PRC

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Wednesday, May 8, 2019

Recorded event now available

or call 1-800-926-7926

This course will provide tax advisers with a practical guide into the tax reporting requirements and planning opportunities for U.S. taxpayers with earnings or assets in China, as well as Chinese citizens with U.S. tax reporting obligations. The panel will describe Chinese residency and expatriation rules, including the "90/183 days" question, and detail the U.S. reporting and payment obligations specific to passive income as well as Chinese trade or business activity. The webinar will also provide useful information on recent Chinese government guidance on the operation of the dual U.S.-China tax treaty.


Economic interactions between citizens of the People's Republic of China (PRC) (including Hong Kong) and the United States continue to expand, and these interactions create planning opportunities and tax obligations in both countries. In many instances, these considerations extend to other countries in the "Pacific Rim."

For Chinese citizens, a key consideration is offshoring of assets accumulated in China. Chinese residents have long sought to move capital out of the PRC for purposes of asset protection. While Australia has generally been the preferred Pacific Rim spot for Chinese capital migration, the U.S. is increasingly seen as a destination for Chinese-domiciled capital, often as part of a pre-immigration strategy or in conjunction with children coming to the U.S. for university or post-graduate study.

Capital migration out of China faces several unique challenges, not least of which are strict capital controls designed to limit the amount of currency leaving the country. Trust law in China also presents particular wrinkles in intergenerational and transnational wealth transfers.

For U.S. taxpayers working in China, residence/domicile rules are complex, even by the standards of international tax law. U.S. citizens with a presence in China can be subject to harsh tax treatment if they run afoul of either U.S. or PRC's rules determining tax residence, or the often voluminous tax reporting obligations imposed by each country. Tax advisers serving clients with dual PRC/U.S. presence must understand the complexities of capital controls, tax residency rules, treatment of passive income sourced to the PRC, and tax information reporting duties of both countries.

Listen as our experienced panel provides a practical guide to the tax planning and reporting challenges of taxpayers with dual Chinese/U.S. presence.



  1. Operation of tax treaty
  2. Considerations for Chinese citizens seeking to migrate assets to U.S. domicile
  3. Capital controls
  4. Pre-immigration planning
  5. People's Republic of China income tax structures for foreign workers with a tax presence in China
    1. 90/183 day rules and residency determination
    2. Registration requirements within the PRC
    3. Tax reporting obligations


The panel will discuss these and other important topics:

  • How capital controls work to try to limit asset flight from China and what strategies may Chinese individuals seeking to establish U.S. presence employ to migrate capital into the U.S.
  • International/transnational structures unique to China and the Pacific Rim for purposes of asset transfer and protection
  • What U.S. taxpayers need to know before they begin work and establish residence in China
  • How the PRC-U.S. tax treaty operates to mitigate dual taxation


Loftus, Bill
Bill Loftus

Founding Partner
Coastal Bridge Advisors

Mr. Loftus leads the firm’s corporate executive services, lending and alternative Investment operations of the...  |  Read More

Parent, Anthony
Anthony E. Parent

Founding Partner
Parent & Parent

Mr. Parent is the founding partner of his firm, and has a tremendous amount of success in opt-out audits and FBAR...  |  Read More

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