If you have a Foreign Bank Account in China or Hong Kong, you must be very careful, since these two countries are actively reporting U.S. Taxpayers (or anybody the bank has on record with a U.S. Address) to the IRS and U.S. Government — in accordance with FATCA rules and regulations.

How does IRS find out about foreign accounts?

FATCA Reporting One of easiest ways for the IRS to discover your foreign bank account is to have the information hand-fed to them from various Foreign Financial Institutions.

Is China fatca compliant?

SHANGHAI – China has reached an “in substance” intergovernmental agreement with the United States on cooperation with the Foreign Account Tax Compliance Act (FATCA), according to the U.S. Treasury Department.

Can the IRS access my bank account?

The Short Answer: Yes. The IRS probably already knows about many of your financial accounts, and the IRS can get information on how much is there. But, in reality, the IRS rarely digs deeper into your bank and financial accounts unless you’re being audited or the IRS is collecting back taxes from you.

Do you have to file a tax return in China?

The tax system is even more complicated. Tax depends not only on your income but the length of time you’ve been in China. The good news is that most employers will handle the income tax for you. However, if not, you will need to spend some time calculating and studying tax law before filing the annual tax return. What Is the Tax System in China?

How does the tax system work in China?

The tax system is even more complicated. Tax depends not only on your income but the length of time you’ve been in China. The good news is that most employers will handle the income tax for you. However, if not, you will need to spend some time calculating and studying tax law before filing the annual tax return.

Do you have to file tax return for foreign bank account?

However, concerned workers and investors need to file returns with the IRS. Since foreign accounts are taxable, the IRS and U.S. Treasury have a very rigid process for declaring overseas assets.

What kind of bank account do you need in China?

You can check the bank’s website beforehand to find out what products and services they offer. If you opt for a Chinese bank, you most likely will need an “all-in-one account” at the BoC and the ICBS, or an “RMB and Foreign Currency Demand Deposit Account” at the ABoC.