Philip Zhang, a partner in the New York Office of Zhong Lun Law Firm, was recently interviewed at the NASDAQ headquarters by Phoenix Television concerning a recent U.S. tax law.
On July 1, 2014, a new U.S. tax law, known as the Foreign Account Tax Compliance Act (FATCA), went into effect. Under the new law, foreign banks and financial institutions will be required to report to the U.S. government information concerning accounts held by U.S. citizens and green-card holders. In the days prior, China had entered into an agreement with the U.S., under which the U.S. would also provide information to China concerning Chinese taxpayers’ accounts in the U.S.
The new law will have an impact on both U.S. and Chinese taxpayers who have bank accounts in the U.S. and China, in particular, high net-worth individuals. Zhong Lun Law Firm has a very strong Taxation and Wealth Planning team, who are able to provide legal advice to high net-worth individuals in their cross-border taxation and wealth planning.