US–Hong Kong Tax Advisory & FATCA Compliance

Yes, if you are a US citizen or green card holder. The US taxes worldwide income regardless of where you live. However, the Foreign Earned Income Exclusion (FEIE) under IRC s.911 allows you to exclude up to USD 126,500 (2024) of foreign earned income, and the Foreign Tax Credit can offset remaining US tax with HK salaries tax paid.

FBAR (Foreign Bank Account Report) — FinCEN Form 114 — must be filed by any US person with a financial interest in or signature authority over foreign bank accounts exceeding USD 10,000 in aggregate at any point during the year. Non-wilful violations: up to USD 10,000 per account per year. Wilful violations: up to the greater of USD 100,000 or 50% of account balance per year.

GILTI (Global Intangible Low-Taxed Income) is a US tax under IRC s.951A on the profits of Controlled Foreign Corporations (CFCs) — foreign companies ≥10% US-owned. If your HK company has a US shareholder owning ≥10%, that shareholder may owe US GILTI tax on the HK company's profits each year, even without a dividend. The effective GILTI rate is 10.5-13.125% (for individuals without the corporate 50% deduction).

No. There is no double tax treaty between the US and Hong Kong. HK does not have a tax treaty with the US (the US-China DTA does not apply to HK). This means US persons in HK rely on the FEIE, Foreign Tax Credit (Form 1116), and other domestic relief provisions rather than treaty protection.

The IRS Streamlined Foreign Offshore Procedure allows US persons residing outside the US who are behind on tax filings (non-wilfully) to catch up by filing 3 years of tax returns and 6 years of FBARs, with a 0% penalty (for overseas residents). This is the recommended path for most non-compliant US expats in HK.

Yes. Under IRC s.877A, "covered expatriates" (those with net worth ≥ USD 2M or average annual tax liability ≥ USD 190,000, or non-compliance over 5 years) are subject to a mark-to-market exit tax — deemed disposal of all worldwide assets at fair market value on the day before expatriation. HK company shares are included.