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isitts
Joined: 04 Jun 2010
Posts: 193
Location: Korea
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 Posted: Thu Apr 26, 2012 4:14 am Post subject: |
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| wangdaning wrote: |
| isitts wrote: |
| wangdaning wrote: |
| Some things to note. Make sure you are a resident of the US. Also, be aware that if you get out of the Chinese taxes on this you must pay taxes to your country of residence. It is meant to avoid double taxation, not to make zero taxation. In my case, if I were to pay US taxes on my income, I would pay more than I do here. |
Not if you pass the physical presence test on form 2555 (foreign earned income exemption). |
If you get out on the physical presence test you are not applicable to be a resident of the state and thus must pay taxes to China. |
That's if you claim China is your bona fide residence (claim China is your tax home).
Physical presence test is different. US is still your tax home, but you were physically present in another country for 330 days. |
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isitts
Joined: 04 Jun 2010
Posts: 193
Location: Korea
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| Posted: Thu Apr 26, 2012 4:30 am Post subject: |
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| naturegirl321 wrote: |
| As of March 1, 2012, I am now a tax resident of Korea, so I can and will be entitled to the three years of no taxes in China. |
So will you need to get a residency certificate from Korea? |
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wangdaning
Joined: 22 Jan 2008
Posts: 3154
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| Posted: Thu Apr 26, 2012 4:48 am Post subject: |
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| Want to apologize. I don't really understand this situation, so my ideas on it are not really valid. I was just stating my own thoughts on the situation. |
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isitts
Joined: 04 Jun 2010
Posts: 193
Location: Korea
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| Posted: Thu Apr 26, 2012 5:23 am Post subject: |
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| wangdaning wrote: |
| Want to apologize. I don't really understand this situation, so my ideas on it are not really valid. I was just stating my own thoughts on the situation. |
No, no! No need to apologize.  It's confusing as hell. I had thought the same as you before.
[edit]: And it should be noted that the IRS doesn't always give out residency certificates willy nilly. If it doesn't appear to them that the US actually is your tax home, they may not give you the certificate. Some of the factors that determine whether or not they give you the certificate are establishment of a permanent address in the US and/or regular employment in the US. |
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naturegirl321
Joined: 04 May 2003
Posts: 9041
Location: home sweet home
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| Posted: Thu Apr 26, 2012 10:40 am Post subject: |
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| isitts wrote: |
That's if you claim China is your bona fide residence (claim China is your tax home).
Physical presence test is different. US is still your tax home, but you were physically present in another country for 330 days. |
NOT claiming bona fide residency at all: on my US taxes. I claim PPT.
To get out of the Chinese taxes, I will have to claim the country that I'm in as my TAX home.
| isitts wrote: |
| naturegirl321 wrote: |
| As of March 1, 2012, I am now a tax resident of Korea, so I can and will be entitled to the three years of no taxes in China. |
So will you need to get a residency certificate? |
Yes, and I'll get it from the tax office and immigration if I have to.
| isitts wrote: |
No need to apologize. Smile It's confusing as hell. I had thought the same as you before.
[edit]: And it should be noted that the IRS doesn't always give out residency certificates willy nilly. If it doesn't appear to them that the US actually is your tax home, they may not give you the certificate. Some of the factors that determine whether or not they give you the certificate are establishment of a permanent address in the US and/or regular employment in the US. |
Don't worry. I'm just as confused and it's happening to me. I know I have DOMICLE in the US thanks to my license and bank accounts. As well as a permanent address: my parent's. |
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choudoufu
Joined: 25 May 2010
Posts: 3325
Location: Mao-berry, PRC
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| Posted: Thu Apr 26, 2012 1:42 pm Post subject: |
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here's some stuff:
http://www.irs.gov/newsroom/article/0,,id=123818,00.html
http://www.irs.gov/businesses/small/international/article/0,,id=122559,00.html
http://www.irs.gov/businesses/small/international/article/0,,id=137809,00.html
"Note: Form 8802 will not be processed unless a user fee is paid with the form. Effective April 1, 2012, the user fee for Form 8802 applications increased. Forms 8802 received with a postmark dated on or after April 1, 2012, will be charged a flat rate fee of $85.00 per application, regardless of the number of certificates requested. For further information, refer to the instructions for Form 8802."
$85 for the certificate? every year? that's more tax than i pay the
chinese government. (if they actually took it out....) |
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isitts
Joined: 04 Jun 2010
Posts: 193
Location: Korea
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| Posted: Thu Apr 26, 2012 2:28 pm Post subject: |
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| choudoufu wrote: |
here's some stuff:
http://www.irs.gov/newsroom/article/0,,id=123818,00.html
http://www.irs.gov/businesses/small/international/article/0,,id=122559,00.html
http://www.irs.gov/businesses/small/international/article/0,,id=137809,00.html
"Note: Form 8802 will not be processed unless a user fee is paid with the form. Effective April 1, 2012, the user fee for Form 8802 applications increased. Forms 8802 received with a postmark dated on or after April 1, 2012, will be charged a flat rate fee of $85.00 per application, regardless of the number of certificates requested. For further information, refer to the instructions for Form 8802."
$85 for the certificate? every year? that's more tax than i pay the
chinese government. (if they actually took it out....) |
Says that's for additional requests. |
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choudoufu
Joined: 25 May 2010
Posts: 3325
Location: Mao-berry, PRC
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| Posted: Thu Apr 26, 2012 3:10 pm Post subject: |
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confusing. additional certificates? is that for filing in multiple
countries having tax treaties with the us?
it seems you'd have to apply for a new certificate annually. |
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isitts
Joined: 04 Jun 2010
Posts: 193
Location: Korea
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| Posted: Fri Apr 27, 2012 1:22 am Post subject: |
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| choudoufu wrote: |
confusing. additional certificates? is that for filing in multiple
countries having tax treaties with the us?
it seems you'd have to apply for a new certificate annually. |
Yeah, maybe for multiple countries.
I was going to add in my last post that the fee in the other link looked like it was if you filed past a certain date, but I'd turned off my computer for the night. |
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