EB-5 Investor Visa (U.S. Tax Issues)

Co-authored by Jordan L. Eftekari, Esq.				jurisdiction for real estate, business assets of a
(1) Introduction				permanent establishment, and a fixed base for the
On November 2, 2007, the Wall Street Journal				performance of personal services.
published an article: “Got $500,000? The U.S.				These treaties provide for
Awaits (Government’s EB-5 Program Offers				“competent authority” resolution for tax disputes
Foreign Investors Green Cards for Job Creation)”.				(and information exchange), address double taxation
A Federal program known as EB-5 (Immigrant-Investor				by tax credits, and may provide a U.S. Estate Tax
Visa), administered by the U.S. Citizenship &				deduction for property passing to a Surviving Spouse.
Immigration Services (“USCIS”), encourages				If a treaty contains a savings clause,
foreign investors to invest their way to living in the				the U.S. may tax a Decedent’s Estate, or
U.S.A.				donor’s gift, as though the treaty was not in effect.
Morrie Berez, chief of the EB-5 program at USCIS,				Estate & Gift Tax Treaties (18)
stated: “The opportunity is truly beautiful to				1. Australia Estate Tax Treaty
individuals who want to live and contribute their energy				2. Australia Gift Tax Treaty
in the United States, and it creates economic growth				3. Austria Estate and Gift Tax Treaty
and especially jobs for Americans.”				4. Canada Estate Tax Treaty
There are 10,000 EB-5 Visas available every year, and				5. Denmark Estate and Gift Tax Treaty
only 867 issued in 2007. Based on the favorable				6. Finland Estate Tax Treaty
currency arbitrage (Euro/Dollar, UK Pound/Dollar) the				7. France Estate and Gift Tax Treaty
EB-5 Visa is a cost-effective, time-efficient way to				8. Germany Estate and Gift Tax Treaty
immigrate to the U.S.				9. Greece Estate Tax Treaty
An investor (and immediate family) can now obtain				10. Ireland Estate Tax Treaty
green cards (Permanent US Residency) with an EB-5				11. Italy Estate Tax Treaty
Visa by investing $500,000 into a Government				12. Japan Estate and Gift Tax Treaty
approved Regional Center (currently, over 30 Regional				13. Netherlands Estate Tax Treaty
Centers). Investors receive the security of				14. Norway Estate and Inheritance Tax Treaty
permanent US residence without repeated visa				15. South Africa Estate Tax Treaty
applications. Citizenship may be obtained after five				16. Sweden Estate, Inheritance and Gift Tax Treaty
years.				17. Switzerland Estate and Inheritance Tax Treaty
The investment may be made in one of three forms				18. United Kingdom Estate and Gift Tax Treaty
with the EB-5 Visa:				U.S. Income Tax Treaties
1. Invest $1,000,000 into a business and hire ten				Under U.S. Federal Income Tax Laws, an alien is either
employees anywhere in the USA, or				taxed as a resident alien (subject to U.S. Income Tax
2. Invest $500,000 and hire ten employees in an area				on world-wide income) or a non-resident alien (subject
where the unemployment rate exceeds the national				to U.S. Income Tax on U.S. source income).
average by 150% or the rural population is less than				Non-Resident Alien: U.S. Tax Resident
20,000, or				An alien is classified as a resident alien (U.S. tax
3. Invest $500,000 into a Government designated				resident) if:
Regional Center and avoid direct employment.				1. He is a U.S. lawful permanent resident at any time
The $500,000 investment is the least expensive way				during the calendar year (i.e., has a “green card”).
to satisfy the visa requirements in order to receive the				2. He meets the “substantial presence test”
permanent green card after the two-year period.				(present in the U.S. for 122 days per year over a 3
Although the first two types of investment lead to				year period).
permanent green card status, they require an additional				Substantial Presence Test
showing that at the end of the two year period, ten				An alien satisfies the “substantial presence test”
qualified individuals have maintained jobs in the targeted				for any calendar year (the “current year”) if:
employment area.				1. He is in the U.S. for at least 31 days during the
The minimum period of the investment is				current year.
approximately three years. Once an investor				2. The sum of the number of days in the U.S. in the
emigrates they may apply to have ‘conditions’				current year and two preceding calendar years equals
removed after 1 year and 9 months in the USA.				or exceeds 183 days (“183 day test”).
Processing takes up to six months. ‘Conditions				3. For the “183 day test”, each day in the U.S. in
removal’ means that the investment is no longer				the current year is counted as a full day. Each day in
tied to the EB5, and the investor is then free to sell the				the U.S. in the first preceding calendar year is counted
investment.				as 1/3 of a day, each day of presence in the second
The EB-5 Visa investment may be a passive				preceding calendar year is counted as 1/6 of a day
investment, requiring no active business management.				(IRC §7701(b)(3)(A)(ii)).
With a green card via an EB-5 investment visa				“Substantial Presence Test”: Closer
investors have the flexibility to take any job, run any				Connection Exception
business, retire and live anywhere in the USA, with the				An alien who meets the substantial
benefits enjoyed by U.S. citizens including property				presence test may avoid being classified as a U.S. tax
ownership or education.				resident if:
(2) History EB-5 Program				1. He is present in the U.S. for fewer than 183 days
The EB-5 Visa program was started in 1991. In 1991,				during the calendar year.
the Investor for an EB-5 Visa was required to make				2. He maintains a tax home in a foreign country during
an investment of a minimum:				the entire current year.
1. $1,000,000				3. He has a closer connection to the foreign country
2. $500,000 (in a targeted unemployment area)				(i.e., his tax home) during the current tax year.
The investment required the creation of 10 jobs.				4. He timely files IRS form 8840, and has not applied
For the first two years the program				for a “green card” (IRC §7701(b)(3)(B) and (C)).
was only set up for those who were willing to invest				The United States has 61 income tax treaties (see
and create their own business that would produce at				below). To be eligible for the benefits of an income
least ten jobs. However, in 1993, the government				tax treaty, an individual must qualify as a resident of
began to designate certain businesses as regional				either the U.S. or the other country that is a party to
centers. Original businesses that existed in an area				the treaty (“the contracting state”).
where the unemployment rate exceeds the national				The U.S. Model Income Tax Treaty (Art 4(1)) defines
average by 150% or the rural population is less than				“resident of a contracting state” as “any
20,000 fit within the regional center designation and				person who, under the laws of that state is liable for
were then eligible to be duly approved by the CIS				tax in the state, by reason of his domicile, residence,
(formerly the INS).				citizenship, place of management, place of
Between 1993 and 1998 several				incorporation”.
companies were designated as regional centers.				If an alien is classified as both a U.S. tax resident and a
These companies all competed for foreign capital from				resident of its treaty partner (“dual resident”), the
the foreign investors involved in the EB-5 Visa				tax treaties contain “tie-breaker” provisions
program. The competition that existed for the foreign				which determine the dual resident’s tax residence
capital and the newness of the EB-5 Visa program led				status as follows:
to abuses of the system. Most of the companies didn't				1. Tax resident in country with permanent home.
offer sound investments and were really in business to				2. If permanent home in both countries, tax resident in
collect fees rather than to fund an ongoing business.				country with “center of vital interests” (personal
Many investment opportunities didn't raise the full				and economic interests).
$500,000 investment capital or hire the required				3. If the center of vital interests cannot be determined,
number of employees.				tax resident in country in which he has a habitual
CIS rightly wanted to stop these				abode.
abuses of the program. In 1998, CIS wrongly applied				4. If the habitual abode is in both (or neither) countries,
their revised rules retroactively to people who already				he is a tax resident of the country in which he is a
had approved petitions. CIS attempted to revoke				national).
these visa petitions. This started the litigation. The				An alien who claims the benefit of a treaty, to be
litigation that ensued put the program on hold from				classified as a non-resident, will still be subject to U.S.
1999-2002.				federal income tax as a non-resident alien.
In 2002, Congress passed a new law				A non-resident alien who relies on a U.S. tax treaty for
to protect the pre-1998 investors. Also, in 2002, in a				an exemption from U.S. tax that is effectively
case commonly known as "Chang" the 9th Circuit				connected with a U.S. trade or business is required to
Court of Appeals ruled that CIS may not apply their				file IRS Form 8833 to disclose the tax exemption
new rules retroactively. In August of 2003, CIS began				reliance (IRC §6114; Treas Reg 301.6114-1).
approving regional center and EB-5 Visa petitions for				Income Tax treaty benefits are available only to a
the first time since 1998.				“resident” of a country and special rules may
The EB-5 Visa Program was amended in 2002 by the				apply to determine residency of trusts, estates,
following statute (Pl 107-273 Sec. 11037 – 2002):				flow-through and hybrid entities. Relief from double
“A regional center shall have				taxation is afforded a treaty resident by specific
jurisdiction over a limited geographic area, which shall				provisions allocating taxing jurisdiction over items of
be described in the proposal and consistent with the				income between the two countries that are parties to
purpose of concentrating pooled investment in defined				a treaty, and by a “treaty” tax credit provision.
economic zones. The establishment of a regional				Administration provisions, providing for mutual
center may be based on general predictions, contained				agreement procedure and for exchange of information
in the proposal, concerning the kinds of commercial				and assistance in collection are intended to prevent tax
enterprises that will receive capital from aliens, the jobs				avoidance and evasion.
that will be created directly or indirectly as a result of				Special treaty residency issues are presented by U.S.
such capital investments, and the other positive				citizens and aliens admitted for permanent residence in
economic effects such capital investments will have.''				the United States (i.e., “green card holders”).
As of 2002, Investors may invest $500,000 in a				The United States taxes its citizens and residents on
regional center (in a targeted unemployment area)				their world-wide income, wherever they reside. Such
without the necessity of creating 10 jobs. For the				individuals may be U.S. Income Tax residents (for tax
$500,000 investment, an investor receives a				treaty purposes) even when physically residing outside
“conditional green card.”				the U.S.).
In January 2005, to improve and				Under a treaty’s savings clause, the United States
expedite EB-5 regional center related applications				reserves the right to tax its citizens and residents (as
USCIS established an Investor and Regional Center				determined under a treaty) as if the treaty had not
Unit, (“IRCU”). The unit is the sole adjudicative				entered into force. As a result, U.S. citizens and
jurisdiction for Regional Center applications pursuant to				residents may not use a U.S. Income Tax Treaty to
the Immigrant Investor Pilot Program for purposes of				reduce U.S. Income Tax.
approval, denial and Requests for Evidence (RFE's).				Income earned through a fiscally transparent entity (i.e.,
The unit also monitors and follows up on the actions of				partnership, limited liability company, grantor trust) will be
approved Regional Centers to ensure compliance with				considered to be derived by a treaty resident if the
the terms, scope, and conditions of their approval				residency country considers that person as deriving
designation relative to their approved business plans				the item of income.
and indirect job creation methodologies. Finally, the unit				In the case of non-grantor trusts and estates, treaty
develops and proposes EB-5 program, policy, and				“residency” (i.e., the liability for income tax) is
regulation changes or improvements to USCIS				determined by the domicile, residence, place of
management.				management of the estate or trust. The trust or
The CIS is constantly continuing their efforts to				estate is liable for tax in the treaty per the country (not
expedite and organize the EB-5 program. Up until				whether income is liable to tax in the “hands” of
January 2009, there were three different filing locations				the trust/estate or its beneficiaries).
for visa and/or regional center petitions. Currently the				A non-resident partner of a U.S. partnership (trade or
CIS has established a unit at the California Service				business in the U.S.) is taxable by the U.S. in the
Center and utilizes it as the sole location to file for the				partner’s share of partnership income (under the
EB-5 program. This center is comprised of				branch profits article of a U.S. income tax treaty).
specially-trained adjudicators dedicated to EB-5				Any gains from the sale of such a partnership interest
adjudications. By consolidating adjudications at the				will be taxable by the U.S. to the extent the gains are
center, USCIS believes that it will be able to reduce				attributable to business assets of the partnership
overall processing times and better monitor EB-5				(Donroy v. U.S. 301 F.2d 200 (9th Cir 1962), Unger v.
related adjudications.				Commr 936 F.2d 316 (D.C. Cir. 1991), aff’g T.C.
(3) U.S. Tax Issues – Non-Resident Aliens				Memo 1991-15; Rev. Rul. 91-32 1991-1 C.B. 107).
U.S. Estate Tax (Non-Resident Aliens)				Non-resident shareholders of U.S. corporations are
A non-resident alien is subject to U.S. estate tax on				subject to a 30% statutory withholding tax on U.S.
their taxable estate assets situated in the U.S. (IRC				source dividends that are not “effectively
§2101(a), 2106(a)).				connected” business income and paid to a
For U.S. estate tax, both stock of a U.S. corporation				non-resident (IRC §871(a), 881(a), 1441(a)). The
(IRC §2104) and U.S. real estate (Treas Reg				withholding rate may be reduced by treaty.
§20.2104-1(a)91)) are “situated” in the U.S.				Income tax treaties seek to prevent double taxation
Non-resident aliens are entitled to:				by:
1. Unlimited deduction for transfers to U.S. citizen				1. Assigning primary taxing jurisdiction over a resident
spouses (IRC §2106(a)(3)).				to one treaty partner.
2. A “$60,000 unified credit”, which permits a				2. Limiting source country taxation of income.
non-resident alien to transfer only $60,000 worth of				3. Providing a foreign tax credit by the resident country
property free of estate tax.				for items of income taxed by both the source and
3. Deduct a portion of expenses, indebtedness, taxes				residence countries.
and losses from their gross estates (IRC §2106(a)(1)),				Under U.S. Income Tax treaties, interest, royalties
deduct certain charitable contributions from their gross				(intellectual property: copyrights, patents, trademarks) is
estates (IRC §2106(a)(2)(A)), but only if they disclose				taxable by the owner’s country of residence (i.e.,
their world-wide estate in their estate tax return (IRC				the source country attributes the income to
§2106(b)).				owner’s country of residence).
A person who acquires property from a non-resident				Under U.S. Income Tax treaties, source country
alien decedent will receive a “stepped-up” basis				taxation is preserved for real estate income (i.e., the
in the property (i.e., a basis equal to the fair market				source country has the primary taxing right). The
value of the property at the date of the				source country does not have the exclusive taxing
decedent’s death) regardless of whether the				right; avoidance of double taxation depends upon the
property was includible in the non-resident alien’s				residence country granting a tax credit for source
gross estate for estate tax purposes (IRC §1014(b)).				country tax.
Generation Skipping Tax				Capital Gains
Non-resident aliens are subject to the generation				Under U.S. domestic tax rules, the U.S. retains the right
skipping tax but only on gifts subject to gift or estate				to tax gains realized by a non-resident from the sale
tax (e.g., no gift tax on lifetime “skips” of				of U.S. real property holding companies (IRC §897).
intangible property).				Gains realized by a non-resident from the sale of
U.S. Gift Tax (Non-Resident Aliens)				personal property are “foreign source” and not
A non-resident alien is subject to gift tax when he				taxable by the U.S. (IRC §865).
makes a gift of real or tangible personal property				Under U.S. tax treaties, gains from the sale of real
situated in the U.S. (IRC §2501(a)(1), §2511(a); Treas				property are taxable by the country in which the real
Reg §25.2511-1(b)).				property is located. The source country has the
A gift of U.S. real estate is subject to gift tax (Treas				primary taxing right which is not an exclusive right.
Reg §25.2511-3(b)(1)).				Avoidance of double taxation will depend upon
A gift of U.S. intangible personal property is not subject				whether the resident country grants a credit for
to gift tax (IRC §2501(a)(2)).				source country taxes.
Non-resident aliens are not entitled to the unified credit				Personal Services
($1M in gifts exempt from tax).				Income from employment may be
Non-resident aliens are entitled to:				taxed in the country of residence. Income from
1. $13,000 annual exclusion for gifts to any person.				furnishing personal services (i.e., not employee
2. Unlimited exclusion for gifts to defray educational or				services) is taxed by the source country as
medical expenses.				“business profits” derived from furnishing
3. The unlimited exclusion for gifts to citizen spouses.				personal services. Income that may be taxed as
4. The $133,000 (2009) annual exclusion for gifts to				business profits includes all income from the
non-citizen spouses (see: Rev Proc 2008-66, IRC				performance of the personal services carried on by
§2503(b); 2503 (e), Treas Reg §25.2523(i)-(1)(a),				the partnership and any income from ancillary activities
(c)(2)).				to the performance of these services.
5. Unlimited amount of property to U.S. charity free of				For employees, compensation for
gift tax (IRC §2522(b)).				personal services (i.e., dependent personal services)
6. Unlimited amount of property to a trust, or				may be taxed by the employee’s residence
foundation, only if the gift is to be used within the U.S.				country and by the source country, to the extent the
7. Basis of property, acquired by gift from a				services are performed in the source country (see
non-resident alien is determined in the same manner as				U.S. Model Income Tax Treaty Art. 14(1)).
property basis acquired by gift from a resident alien				The source country retains the right
(IRC §1015, 1015(d)).				to tax all compensation from dependent personal
U.S. Income Tax (Non-Resident Aliens)				services. If three (3) conditions are satisfied,
Non-resident aliens are subject to U.S. Income Tax on				dependent personal services income is exempt from
U.S. source: (1) FDAP Income, (2) Effectively				source country taxation:
Connected Income.				1. The employee is in the source country for less than
(1) “FDAP” Income				183 days during the calendar year in which services
U.S. Source “FDAP Income” i.e., Fixed or				are performed.
Determinable Annual or Periodical Income (e.g., salaries,				2. The compensation is paid by an Employer who is
wages, interest, rents, dividends and royalties).				not a resident of the source country.
A non-resident alien is subject to U.S. federal income				3. The compensation is not a deductible expense by a
tax on FDAP income at a flat 30% tax rate (without				permanent establishment that the employer has in the
the benefit of any related deductions) IRC §871(a),				source country (U.S. Model Income Tax Treaty Art.
873(a). The flat 30% income tax is withheld at the				14(2)).
income source (IRC §1441).				Athletes & Entertainers
“FDAP Income” includes:				Under the U.S. Model Income Tax Treaty Art 16(1),
1. Gains from sale of intangible property (i.e., patents,				performance income of an athlete or entertainer may
copyrights or other intangibles) (IRC §871(a)(1)(D)).				be taxed by the source country if gross receipts paid
“FDAP Income” does not include:				by the entertainer or athlete exceed $20,000 for the
1. Gain from the sale of stock of a domestic				taxable year. If gross receipts exceed $20,000, the
corporation (Treas Reg §1.871-7(a)(1)).				full amount paid the athlete or entertainer may be
2. Interest on bank deposits and “portfolio				taxed (not just the excess over $20,000). Tax may
interest” (IRC §871(h) and (i).				be imposed under Article 16 even if the performer
Income tax treaties may reduce or eliminate the 30%				would have been exempt from tax under Article 17
flat tax on the FDAP Income.				(Business Profits) or Article 14 (Income from
(2) Effectively Connected Income				Employment) of the U.S. Model Income Tax Treaty.
Income that is “effectively connected” to a U.S.				If an “employer” corporation provides the
trade or business.				entertainer/athlete’s services, the income may be
A non-resident alien, who is engaged in a U.S. trade or				taxed in the country in which the activities are
business, is subject to U.S. federal income tax on his				exercised unless the contract pursuant to which the
“effectively connected income”, at same tax				personal services are performed allows the Employer
rates as U.S. citizens and resident aliens (IRC				Corporation to designate the individual who is to
§871(b)).				perform the personal activities (U.S. Model Tax Treaty
For a non-resident alien, engaging in a U.S. trade or				16(2)).
business is not the basis for U.S. income tax. U.S.				Income is deemed to accrue to the Employer
income tax is imposed if a non-resident alien owns a				Corporation if it controls or has the right to receive
business through a permanent establishment in the U.S.,				gross income in connection with the performer’s
i.e., a fixed place of business, (e.g., place of				services (Article 16).
management, a branch, an office, a factory).				Foreign Tax Credits
If the non-resident alien is a resident of a country with				Under the Model Treaty, the U.S. as
which the U.S. has an income tax treaty, the treaty				the country of residence provides its citizens and
may reduce or eliminate U.S. federal income tax on				residents with a credit for income taxes imposed by a
effectively connected income.				treaty partner to release double taxation. The
A non-resident alien must file IRS Form 8833 to				creditable taxes are listed in the treaty (Art 23(1)).
disclose reliance on a U.S. tax treaty for an exemption				The U.S. statutory foreign tax credit rules determine
from U.S. tax on “effectively connected income.”				the amount of the tax credit (U.S. Model Treaty Article
(4) U.S. Tax Treaties				23). The U.S. will allow a foreign tax credit pursuant
Introduction				to the treaty credit article, even if a credit would not
In the 21st Century, world globalization				otherwise be available under the U.S. statutory foreign
has produced the following results:				tax credit rules.
1. Instantaneous global communications				Administrative Provisions
2. Multi-national investors (with transnational families)				U.S. Income Tax Treaties grant permission to
3. International mobility of people on a previously				authorities of each country to deal directly with each
unimagined scale				other to resolve taxation disputes, to exchange
International investors in the U.S. face immigration				information and assist each other in tax collection
issues (i.e., legal presence) and Income, Estate &				(Model Treaty Art. 25: Mutual Agreement Procedures,
Gift Tax issues, potential “double taxation” (in the				Art 26: Exchange of Information).
U.S. and their country of citizenship), potential “triple				Income Tax Treaties (61)
taxation” (if they have a third country of residence).				1. Australia Income Tax Treaty
The U.S. currently has 61 Income Tax and 18 Estate				2. Austria Income Tax Treaty
& Gift Tax Treaties (see, below). A Tax Treaty				3. Bangladesh Income Tax Treaty
is a bi-lateral agreement, between two (2) countries, in				4. Barbados Income Tax Treaty
which country modifies their tax laws for reciprocal				5. Belgium Income Tax Treaty
benefits.				6. Bermuda Income Tax Treaty
Tax Treaties have three (3) objectives:				7. Bulgaria Income Tax Treaty
1. Prevent double taxation				8. Canada Income Tax Treaty
2. Prevent discriminatory tax treatment of a resident				9. China Income Tax Treaty
of a treaty-country				10. Cyprus Income Tax Treaty
3. Permit reciprocal tax administration to prevent tax				11. Czech Republic Income Tax Treaty
avoidance and evasion (see: Rev. Rul. 91-23, §2.01,				12. Denmark Income Tax Treaty
1991-1 C.B. 534)				13. Egypt Income Tax Treaty
U.S. Estate & Gift Tax Treaties				14. Estonia Income Tax Treaty
Under U.S. Federal Estate & Gift Tax Laws, an				15. Finland Income Tax Treaty
alien is taxed as a U.S. Estate & Gift Tax				16. France Income Tax Treaty
Resident once he establishes a U.S. domicile. An alien				17. Germany Income Tax Treaty
acquires a U.S. domicile by living in the U.S. (for even a				18. Ghana Income Tax Treaty (Ships and Aircraft)
brief period of time) with the requisite intention to				19. Greece Income Tax Treaty
indefinitely remain (Treas Reg §20.0 – 1 (b)(1)				20. Hungary Income Tax Treaty
Treas Reg §25.2501 – 1(b))				21. Iceland Income Tax Treaty
An alien, who establishes a U.S. domicile, is subject to:				22. India Income Tax Treaty
1. A U.S. Gift tax on the donor’s act of making the				23. Indonesia Income Tax Treaty
gift (transfer of asset) (IRC §2501(a))				24. Ireland Income Tax Treaty
2. A U.S. Estate tax on the transfer of their taxable				25. Israel Income Tax Treaty
estate (worldwide assets) (IRC §2001(a))				26. Italy Income Tax Treaty
Since 1976, a unified tax rate is applied to assets				27. Jamaica Income Tax Treaty
transferred for both estate and gift tax (tax free gifts				28. Japan Income Tax Treaty
up to $1M, tax free estate up to $3.5M (2009), which				29. Jordan Income Tax Treaty (Shipping and Aircraft)
includes gifts).				30. Kazakhstan Income Tax Treaty
Top Tax Rate (2009): 45%				31. Korea Income Tax Treaty
The United States has 18 estate & gift tax				32. Latvia Income Tax Treaty
treaties (see below). To qualify for the treaty tax				33. Lithuania Income Tax Treaty
benefits, an alien must be domiciled in either the U.S. or				34. Luxembourg Income Tax Treaty
a U.S. Treaty Country i.e., country of origin (or choice),				35. Malta Income Tax Treaty
at the time of his death or at the time of the gift.				36. Mexico Income Tax Treaty
The treaties contain special tax rules which may				37. Morocco Income Tax Treaty
reduce the alien’s U.S. Federal estate and gift tax				38. Netherlands Income Tax Treaty
liability. The treaties are designed to prevent double				39. New Zealand Income Tax Treaty
taxation on the transfer of the same asset (which is				40. Norway Income and Property Tax Treaty
the subject of the estate or gift tax).				41. Pakistan Income Tax Treaty
U.S. Estate Tax Treaties are either				42. Philippines Income Tax Treaty
non-comprehensive (Estate Tax only) or				43. Poland Income Tax Treaty
comprehensive (Estate & Gift				44. Portugal Income Tax Treaty
Tax).Non-Comprehensive Treaties				45. Romania Income Tax Treaty
Non-comprehensive treaties deal				46. Russia Income Tax Treaty
exclusively with Estate Taxes, providing “situs				47. Slovak Republic Income Tax Treaty
rules” for specific assets and determining which				48. Slovenia Income Tax Treaty
country has jurisdiction to impose tax on the assets.				49. South Africa Income Tax Treaty
Estate tax deductions (and specific exemptions) are				50. Spain Income Tax Treaty
allowed under the law of the country imposing the tax.				51. Sri Lanka Income Tax Treaty
Estate Tax Treaties provide tax				52. Sweden Income Tax Treaty
credits to eliminate double taxation. Each country				53. Switzerland Income Tax Treaty
allows a credit against its Estate Tax, in accordance				54. Thailand Income Tax Treaty
with a formula specified in the treaty, with respect to				55. Trinidad and Tobago Income Tax Treaty
property situated in either country or both countries.				56. Tunisia Income Tax Treaty
Comprehensive Treaties				57. Turkey Income Tax Treaty
Comprehensive Treaties address				58. Ukraine Income Tax Treaty
both Estate & Gift Taxes, determine primary				59. United Kingdom Income Tax Treaty
taxing jurisdiction and Decedent’s residence (based				60. USSR Income Tax Treaty
on domicile). Location determines primary taxing				61.

Easy Tax

EB-5 Investor Visa (U.S. Tax Issues)