Immigration and Taxes

D&A’s Tax & Residency Webinar Recording

We held a webinar with key experts on how to maintain US permanent residency for Green Card holders, conditional Green Card holders, and aspiring Green Card applicants. One of the key aspects of this is TAX.

Watch the Webinar

Tax and Residency

The US is an extremely sophisticated tax jurisdiction with state, federal and local taxes. When you have US permanent residency, your must maintain an address in the United States for tax purposes. So what does that mean for travel in and out of America, and what does it mean for your family’s residency. What does that mean if you spend a taxable length of time in another country? What happens with double taxation – i.e. being taxed in both countries?

We disucss

  1. Transitioning Conditional Green Card to a full Green Card – the process and why there are delays. This is the I-829 stage of the EB-5 Investor Visa process.
  2. Waiting on a Conditional Green Card – if your Form I-526 is approved and you are still waiting on your conditional Green Card
  3. What you need to do to maintain your permanent residency status
  4. US Taxes – how it links to your PR status in the US and general considerations for tax for permanent residents
  5. State Tax Returns – you need to pay both federal AND state

The Webinar Features

Gary Kaufman – US Tax Attorney

M R Narasimhamurthy – Senior Partner at MRNM & Co. Chartered Accountants (and successful EB-5 Visa applicant)

Mark I Davies– Chairman, Davies & Associates

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.


Tax Planning for US Immigration

Podcast: Tax Planning for the American Dream

When we first start thinking about moving to the United States, tax is not always uppermost in our minds. But as Global Tax Counsel Gary Kaufman explains in this podcast, it is vital to start planning your tax position from the earliest stages of the process.

In this podcast we cover tax as it relates to the two types of US immigration – immigrant visas and non-immigrant visas.

Immigrant visas refer to programs like the EB-5 Immigrant Investor Visa and the EB-1A and EB-1C visas for extraordinary talent and business leaders respectively. Immigrant visas offer permanent residency status in the United States (Green Cards). Permanent residents are taxed on worldwide income, so it is vital to consider your entire global asset base, and to understand whether the countries in which you hold assets have a tax treaty with the United States.

We also cover non-immigrant visas in the podcast. Non-immigrant visas do not confer permanent residency, however there will still be tax considerations for any earnings made inside the United States.

Many of our non-immigrant visa clients move to America for the purposes of starting or acquiring a business. This can be achieved through the E-2 Treaty Investor Visa, or by setting up a US office of your existing company through the L-1 Intracompany Transfer Visa. In the podcast, Gary explains the importance of structuring the business correctly from a tax perspective at the outset.

Many of our non-immigrant visa clients eventually wish to transition to a Green Card. There are multiple ways to achieve this, and anyone interested should speak to one of our immigration attorneys.

Contact Gary gkaufman@usimmigrationadvisor.com

This podcast is produced for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.


India Tax Changes on Remittances Delayed to October

Sukanya Raman, Associate in our Mumbai office, analyses changes to India’s taxation of remittances.

In February, 2020 the Union Budget had proposed the levy of Tax Collected at Source (TCS) on remittances made under the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India. Although, the Scheme was introduced in the year 2004 with a limit of USD 25,000. This is the first time TCS shall be levied at 5% on remittances over and above certain limit.

TCS was to be applicable for remittances on or after April 1, 2020, as per the budget 2020. However, the provision shall now be effective from October 1, 2020.

In a Financial Year (FY) April- March under the Liberalised Remittance Scheme a resident individual can remit USD 250,000, equivalent to INR 1,90,00,000 with an exchange rate of INR 76.00.

LRS is applicable to resident individuals which also allows minors to remit money to any permissible current or capital account transaction or a combination of both. If remitter is a minor, then their natural guardian must undertake a declaration form. The LRS cannot be availed by corporates, partnership firms, HUF, Trusts etc.

TCS shall be collected at the rate of 5% on remittances aggregating to INR 7,00,000 or more in a financial year. 

Per the RBI guidelines, LRS is permitted for private visits to any country (except Nepal and Bhutan), gift or donation, traveling abroad for employment, emigration, investment abroad, maintenance of close relative abroad, medical treatment abroad, overseas education and Any other current account transaction which is not covered under the definition of the current account in FEMA 1999.

Under the LRS, remittances can be consolidated in respect of close family members. However, it shall be subject to the individual family members complying with the terms and conditions of the LRS.

The remitter is eligible to claim credit for the tax collected (TCS) by the bank while filing their Income Tax returns, if it is remitted to the sender’s own account abroad.  

Based on the data released by RBI, remittance rose by 36% in  FY20 to USD 18.75 billion over the previous high of USD 13.78 billion in FY19.

This blog is for informational purposes only and is not meant as legal advice. For advice on this matter, please contact our team.