Chinese EB-5 Reaction to Foreign Account Tax Compliance Act (FATCA)

The U.S. is one of a few countries that tax its residents on worldwide income. The U.S. and the People’s Republic of China have recently entered into a FATCA agreement whereby Chinese banks will notify the U.S. IRS about accounts held in China by American citizens and permanent residents (green card holders). This is a tax matter and will have no direct bearing on EB-5 or other immigrant cases.

However, the FACTA agreement possibly has some EB-5 immigrants concerned about the Chinese and U.S. government exchanging information about their Chinese bank accounts.

I am by no means a FATCA expert. For more information, I urge people to consult an experienced international tax expert.