Pillar · Chapter III
03/ 07
Cross-Border Tax
Services · Pillar III

Cross-Border Tax

One life, two tax systems.

When Chinese tax residency overlaps with US citizenship, a green card, or US tax residency, the question is not which side to file, but how both sides can read the same story.

For families carrying assets, accounts, and residence across borders, tax planning is a translation discipline before it is a filing exercise.

Reading
Eleven minutes
Focus
Dual residency and global taxation
Filings
FBAR · FATCA · PFIC · 5471
Calendar
4/15 · 6/15 · 10/15 · 6/30
Why Cross-Border Tax

Not two returns,
but one
map of status.

Status first. Forms second.

Chinese tax residents are generally taxed on worldwide income; US citizens and green card holders are also taxed on worldwide income. When two systems can see you at the same time, the first task is sequencing status, source, credits, and disclosure.

Cross-border tax work begins with residency, source, character, and disclosure. Only then do forms become useful.

We place China annual reconciliation, US Form 1040, FBAR, FATCA, PFIC, controlled foreign corporations, foreign partnerships, and trust disclosures on one timeline. The goal is not a single tactic, but a filing story where income recognition, foreign tax credits, treaty articles, and account disclosures do not contradict one another.

The costliest cross-border tax mistake is often not paying slightly more tax. It is giving two systems two stories that cannot be reconciled.

The Signature · Bilateral Bridge

One side is residency,
the other is disclosure.

A bridge between two tax narratives.

We break each cross-border tax issue into the China position, the US position, and the bridge action. First we confirm how each side defines the issue; then we decide the filing, credit, treaty, and remediation path.

China positionBridge actionUS position
Individual income tax

Worldwide taxation for residents

Chinese tax residents generally report worldwide income, while nonresidents report China-source income. The six-year rule and days outside China can affect foreign-source income treatment.

RESIDENCY

Use one calendar to track days of presence, family center, employer, and income source; determine status before choosing forms.

1040

Worldwide taxation for citizens and green card holders

US citizens, green card holders, and US tax residents report worldwide income. Even when living abroad, they may still need Form 1040, state filings, and information disclosures.

CRS

Financial accounts can be exchanged

Bank and brokerage accounts may be identified and exchanged under CRS. Account ownership, beneficial ownership, and joint holders should be mapped before a filing season begins.

ACCOUNTS

Build an account inventory that aligns jurisdiction, maximum balance, beneficial control, and tax residency for each account.

FBAR / FATCA

FinCEN 114 and Form 8938

Foreign financial accounts may trigger FBAR. Specified foreign financial assets may also trigger FATCA Form 8938; the thresholds, scope, and penalties are different.

Foreign investments

Income character must be layered first

Dividends, interest, capital gains, fund distributions, and partnership income may receive different reporting and credit treatment under China rules.

INVESTMENTS

Review funds, companies, and partnership structures before investing, so information-reporting costs do not exceed the investment benefit.

PFIC / 5471 / 8865

Punitive regimes and information forms

Non-US funds may be PFICs. Interests in foreign corporations and partnerships may trigger Form 5471 or Form 8865, and missing these forms can create substantial risk.

Family arrangements

Gifts, trusts, and inheritance

Cross-border gifts and trusts should consider China individual income tax, foreign exchange paths, beneficiary status, and future succession documents.

TRUSTS

Confirm the grantor, trustee, beneficiaries, and source of funds before formation, so succession documents do not become tax blind spots.

Foreign Trust

Foreign trust disclosure

When a US taxpayer is connected to a foreign trust, foreign gift, or inheritance, Form 3520, Form 3520-A, and complex income attribution rules may apply.

Tax treaty

Determine whether treaty relief applies

The US-China Tax Treaty can address some double-tax issues, but eligibility, income type, and beneficial-owner requirements must be tested item by item.

RELIEF

Put FTC, FEIE, treaty articles, and remediation filings into one decision tree instead of handling them as isolated items.

FTC / FEIE

§901 and §911

Foreign tax credits can mitigate double taxation. The foreign earned income exclusion applies to qualifying earned income, but may affect brackets, state tax, and retirement-account planning.

Documentation before optimizationThe best filing position is one the records can still explain years later.
Cadence · Dual Calendar

Put two tax years
on one line.

A dual calendar lowers the cost of surprise.
China trackChina
3/1

Annual reconciliation opens

Review wages, service income, special additional deductions, foreign-source income, and creditable foreign tax.

6/30

Annual reconciliation closes

Complete any tax due, refund claim, foreign-income explanation, and supporting-document archive before the deadline.

Sep

CRS and account review

Check bank tax-residency declarations, joint accounts, beneficial owners, and cross-border receipt records.

Dec

Residency calibration

Review days of presence, departure plans, year-end bonus timing, and recognition of foreign-source income.

US trackUnited States
Jan

Document collection

Collect W-2, 1099, K-1, foreign wage records, highest bank balances, and investment-account statements.

4/15

1040 and FBAR node

Individual returns are generally due 4/15. FBAR is also legally due 4/15 and is automatically extended to 10/15.

6/15

Overseas taxpayer extension

US taxpayers living abroad generally receive an automatic 6/15 filing extension, while interest on unpaid tax still runs from 4/15.

10/15

Extended filing and FBAR

Complete extended Form 1040, Form 8938, Form 5471, Form 8865, PFIC forms, and FBAR review.

Dec

FTC and FEIE forecast

Evaluate §901 foreign tax credits, §911 foreign earned income exclusion, treaty disclosure, and remediation needs.

AprUS deadlines shape China credit support
JunChina reconciliation meets the US overseas extension
OctFBAR automatic extension and information forms close out
DecYear-end calibration of status, income, and exchange rates
One household, one calendarDeadlines are easier when the two systems are read together.
How We Work

Five moves
to rank risk first.

01

Residency Diagnosis

Residency Map

Review Chinese tax residency, US citizenship, green cards, the substantial presence test, state tax, and center of family life to confirm which systems can see you.

02

Accounts and Assets

Account Inventory

List every foreign bank, brokerage, company, partnership, fund, insurance arrangement, trust, and beneficiary relationship to assess FBAR, FATCA, and CRS risk.

03

Income Source Layers

Source Layering

Separate wages, equity, dividends, interest, capital gains, rent, and pension income by source, character, and creditability.

04

Credits and Treaty

Treaty & Credit

Compare foreign tax credits, the foreign earned income exclusion, the US-China Tax Treaty, and state tax effects to choose a defensible filing path.

05

Remediation and Records

Remediation File

If historical disclosure gaps exist, evaluate Streamlined Procedure, reasonable-cause statements, and amended filing cadence while building an audit-readable evidence file.

FAQ

Cross-border tax
starts with status.

If you are a US citizen or green card holder, you generally still report worldwide income to the United States. Whether tax is due depends on income character, foreign tax credits, the foreign earned income exclusion, treaty positions, and state tax, but filing status is not determined by residence alone.

The next step

Put both sides of the file
on the same table.

In thirty minutes, we read status, accounts, income source, and timeline first. If needed, we then set the order for filing, remediation, or long-term structure maintenance.

Book a cross-border tax consultation →
US-China tax status · Foreign accounts · Information reporting — by appointment only