Now more than ever, people can choose to live and work anywhere in the world. Relocation is no longer a matter of stress, especially when it’s Hong Kong. But the only concern here comes is the way US expats live and work abroad as it impacts their tax liabilities. If you are an American citizen who wants to move to Hong Kong, hiring USA tax services in Hong Kong will likely be your best bet to reduce your tax liability using the provisions of credits, exclusions, and foreign pension plans.

Being a US expat one thing is crystal clear that you are subject to filing tax on worldwide income regardless of where you live or work, including Hong Kong. However, there is only one way that can provide you a sigh of relief and that is seeking the guidance of an expert tax preparer to reduce your tax liability while living in Hong Kong.

Major Tax Problems For US Expats

The biggest tax liability issues that US citizens face when living and working in Hong Kong are:

  • Overpay their taxes as they are unaware of the eligible exemptions and credits
  • Underpay their taxes and end up facing hefty fines or penalties imposed directly by the IRS

These are the certain issues that are most likely faced by the American expats visiting Hong Kong for the first time. This is why expats should consider professional US tax services in Hong Kong to get a detailed understanding of how they are impacted by US expat tax laws in Hong Kong.

US tax services in Hong Kong Helps To Reduce Your Tax Liability

When it comes to reducing expat tax liability, you can always count on the expertise of a professional expat tax preparer in Hong Kong. Here’s how you can get the best benefits of the expertise of a US expat tax preparer while living or working abroad.

  • Claim Foreign Tax Credits (FTC) to eliminate double taxation- By claiming the FTC on time, you will get eligible to pay tax to a foreign country on income earned there.
  • Claim Foreign Earned Income Exclusion (FEIE) – In this exclusion, you will get the opportunity to deduct directly up to $105,900 of earnings by proving that you have a tax home in Hong Kong and were also living out of the US for at least 330 days.
  • Claim Foreign Housing Exclusion- You will be eligible for this deduction when you incur living expenses in Hong Kong. Under this exclusion, if you earn more than $100,000 and rent your home, you may be directly able to deduct the rental cost to a certain extent.

Expat tax laws and tax treaties in Hong Kong are complex. The best way to enjoy working in Hong Kong is to reduce your tax liability by seeking professional advice.