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Reporting taxes to US - bloody hell!

  1. #31

    Join Date
    Aug 2011
    Posts
    3

    Probably no payroll taxes

    If you are filing as self employed using Schedule SE then you have to pay SS and Medicare tax. Also, If you work for an American company they may withhold these taxes from your paycheck (my wife has worked for 2 US banks in HK and neither withheld SS or Medicare). And if your company is not an American company you don’t need to pay SS or Medicare taxes. You should be able to google this information to confirm for yourself.

    I have lived in HK 11 years and done my own taxes the last 8 years. The first 3 years were done by KPMG and I learned everything from them and from own self interest in US tax issues. I am not a CPA.

    Elegiaque and Morrison like this.

  2. #32

    Join Date
    Jan 2015
    Posts
    30

    Thanks Scooter, no I'm working as a full, salaried employee of a HK corporation, paying into MPF, etc... so I imagine (hope) this would exempt me from such a considerable liability.


  3. #33

    Join Date
    Jun 2017
    Posts
    5

    hi I have a follow-up question on MPF. For those that say MPF does not have to be reported on FBAR, what's the basis? I am reporting my MPF as income but am not sure if MPF should be on FBAR. Thanks!

    Elegiaque likes this.

  4. #34

    Join Date
    Dec 2010
    Posts
    2,241
    Quote Originally Posted by scootercat
    If you are filing as self employed using Schedule SE then you have to pay SS and Medicare tax. Also, If you work for an American company they may withhold these taxes from your paycheck (my wife has worked for 2 US banks in HK and neither withheld SS or Medicare). And if your company is not an American company you don’t need to pay SS or Medicare taxes. You should be able to google this information to confirm for yourself.

    I have lived in HK 11 years and done my own taxes the last 8 years. The first 3 years were done by KPMG and I learned everything from them and from own self interest in US tax issues. I am not a CPA.
    To add some additional detail on the above my wife worked at 2 US banks and neither withheld SS or Medicare...

    It really depends on the legal entity that your wife belonged to. If your wife or in this case the OP works for a HK legal entity like General Electric Hong Kong, then that legal entity most likely does not pay into say SS / Medicare and also then does not withhold $$ from your paystub. On the other hand, if the salaried employee works for a US legal entity like General Electric USA branch located in Hong Kong, then that legal entity most likely does pay into SS / Medicare and would be $$ from your paystub.

  5. #35

    Join Date
    Aug 2011
    Posts
    3

    Filing MPF for FBAR

    mmc8mmc8, I, too, have an MPF account and a company Provident Fund (ORSO Scheme), both being foreign retirement accounts. I pay tax on the earnings every year as well via "Mark to market." Regarding FBAR, I include these accounts if nothing else to be safe and transparent. It does not hurt to include them as no tax is involved.
    I did a lot of research on this years ago but the only thing I can point to now for info. is the IRS FBAR Reference Guide:
    Financial Account - "Any other accounts maintained in a foreign financial institution" and "A financial account is foreign when it is located outside the US." The MPF is a non-qualified foreign trust and you are a member with an account.
    Financial Interest - "The US person is the owner of record or holder of legal title, regardless of whether the account is maintained for benefit of the US person or for the benefit of another person..."
    There is also a "Filing Exceptions" list and I don't see anything there that would exclude filing for an MPF (a foreign trust).
    I am no expert and there may be someone who can parse the language of this document to justify not filing for an MPF account. I welcome any information anyone else can add to clarify the issue.
    One final note, you may need to file IRS Form 8938 Statement of Specified Foreign Financial Assets if the total value of your foreign financial assets are above the reporting threshold. This form goes to IRS while FBAR with similar info. goes to Dept. of the Treasury.


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