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We wish to thank everyone who attended our events on 10/23 & 10/24, and to our speakers for providing us with all the details surrounding recent tax changes.
D.C. based CPA Peter Stratos, began the evening by explaining the changes to US tax laws, and some of their effects on Americans living in China. Among the wide range of changes to both individuals and corporations, is a push towards a territorial system that encourages repatriation of future foreign earnings by companies. It provides a 100% deduction for dividends received by a US corporation from a foreign corporation, of which it owns 10% or more.
Furthermore, the reduction of US corporate tax rates from 35% to 21% will make it more attractive for US corporations to generate profits in the US, and also make it more effective for foreign investors to invest in US businesses. General changes affecting individuals include seven graduated brackets, with lower overall limits and rates from 10%-37%.
After the intermission, China based CPA Borys Priadko, explained how the new Chinese tax laws will affect both expats and locals. The changes in China have been driven by the ever-rising cost of living, with real wages failing to increase at the same rate.
The tax free base salary amount has increased by over 40% to RMB 5K and the lower income tax brackets have widened by a substantial margin. In the past, all income between RMB 9K and RMB 25K was taxed at 25%. With the new regulations, income under RMB 25K is to be taxed at a maximum of just 20%. The changes set forth are bringing significant benefits to China’s working class, and are set to drive spending and growth.
No matter where you live, we believe that everyone deserves a chance at financial freedom, and access to information that will assist in the process.
Getting the facts can be even more complicated when living abroad, but having a strong grasp on the legal landscape surrounding your taxes is crucial to financial health. Please don’t hesitate to reach out if you have any questions, it would be our pleasure to point you in the right direction.
About the O&G Research Team
The O&G Research Team holds Series 65 and Series 3 certifications and are experienced traders in international financial markets.
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