Question:
When a Brazilian citizen receives American citizenship (or Green Card) via the EB-5, which taxes are due on their income in Brazil related to wages, retirement and financial investment, as there is no taxation agreement between Brazil and the USA?
Answers:
The best advice is to retain the services of an experienced international tax attorney. The most appropriate time to be involved in tax planning is when you have made a decision to become a US permanent residency.
Please consult a tax attorney regarding any tax issues or questions you may have.
In general, resident aliens are taxed in the same manner as U.S. citizens, that is a resident alien is taxed on income derived from all sources, including sources outside of the United States. A U.S. permanent resident must comply with the same reporting and disclosure obligations as U.S. citizens. These obligations include filing Reports of Foreign Financial and Bank Accounts (FinCEN Form 114, previously called FBAR), income tax returns with schedules including Form 8938, Statement of Specified Foreign Financial Assets, Form 3520, Report of Foreign Gift, Bequest or Inheritance, Form 5471, Controlled Foreign Corporation Return and possibly other forms. Currently, the U.S. income tax rates for individuals range from 10% to 39.6% for federal income tax purposes. State income tax rates should be considered as well. If you have any specific questions, feel free to visit www.littleponce.com or email us at cpas@littleponce.com. Our CPA firm has years of experience with U.S. expatriate and international tax clients.