[PDLM]

HK Citizenship doesn't exist per se. Citizens of HK are citizens of China. There are now a number of non-(ethnic)Chinese who have taken Chinese citizenship in Hong Kong, so there is no problem in principle if you are committed to the idea.

Note though that I believe the USA does make it quite hard to renounce citizenship, and there are penalties associated with making the US your home again after you have done so (like having to pay all the tax you would have paid in the intervening years, or something like that). [This post is heresay and rumour - please don't ask me to provide sources.]

[tx75070]

Here is how I understand the tax situation as I was exploring the very same thing. You have to file taxes in the US and HK. The bottom line is you will not end up paying more taxes because of this. For US, your first $80,000 USD is income tax free. You still pay HK tax but at a lesser rate. There is also a foreign income tax credit. So let's say you have a large salary like $500,000 USD (if you do, I want to be your best buddy and you probably wouldn't be asking this question on a website) you would not pay more tax than you would have paid earning the same income in the US as the foreign income tax credit kicks in. When it is all said and done you will pay either less or the same amount of taxes than what you would pay earning the same income while living in the US. It just depends on your salary.

[vanvarn]

Go to the US consulate. There is information there on this very subject. Everything depends on your exact circumstances, which may be different from...say....mine!

[Emuse]

Math and technical rules and regulations of tax law have never been my strong point... That’s why I was an English major... less work! So let’s make this simple for a stupid guy like me. I've read and re-read the links Knowitall sent (cool guy by the way been reading his posts for about 2 years). Forget housing allowance because I am getting none of all that wonderful stuff. Let's do simple numbers:

25k HKD a month = 300,000 HKD

300,000 - 10% HK tax
and now ______% in US tax.
Can anyone give me an idea of what to put in that blank?

I wish I wasn't a U.S. citizen. Anyone want to trade? lol I still have no idea even after all my reading.
(Haven’t been able to find this mythical "other" thread either)

[whong]

Emuse,

based on the information u have provided on this post, you should be exempted from paying US tax given you have a huge $80,000 USD foreign income tax exemption. However, you still be liable to pay US taxes if you have any source of passive income (ie interests, dividends and etc. ) and capital gains.

answering your fill in the blank question.. should be 0% tax -- in terms of your 300,000 HKD salary...

the other source of income.. u have to do the math again. lol

if u have further questions, please reply or pm... i am an AICPA from NYC relocated to HKG since 04.

[PDLM]

oops - sorry - msread whong's reply.

[Emuse]

this is such good news! I hope it to be true! I certainly won't make more than the 80,000 USD anytime soon. Thank you very much everyone!

[tx75070]

So since you know you will pay less taxes than what you were thinking, do you still want to be an American?

[HKFella]

Originally Posted by tx75070

So since you know you will pay less taxes than what you were thinking, do you still want to be an American?

or rather, ......do you still NOT want to be an American?

[Emuse]

An American citizen... it has many advantages yet unfortunately, a large amount of disadvantages. Don't get me started on the American preoccupation with all things that are none of their business. If I didn't think I'd be censored, I'd happily go on a rant about Hurricane Katrina and the USA's ridiculous dealings. As I have found lots of useful information on this site, I'd rather not be banned.

Unless Mr. Knowitall grants permission for me to start such a thread?