US Tax

The US tax team, a service line under Business Tax Advisory, is a comprehensive, real-time resource located in Shanghai. Currently, our US tax team is comprised of over 15 US tax professionals with substantial experience in the US as well as in China. Our key members have 14+ years of experience, including tenure at the Washington National Tax and New York office. 

With our team’s US tax technical foundation and native Chinese background, we are uniquely positioned to address the US tax needs of various internal and external clients. We have previous experience with numerous Chinese / APAC clients across a variety of industries, including but not limited to e-commerce, manufacturing, TMT, life science, real estate, wealth management, venture capital, private equity, as well as with company founders and their families.

Generally, for clients with US residency and/or presences, or US tax-sensitive investors, we can assess their US tax compliance status and help them comply with complex US tax filing / reporting requirements, if any deficiency is found. Further, we can also help clients identify US tax efficient strategies in terms of investments or organisational changes. Our services are comprehensive. For example: 

Comprehensive US Tax Compliance Services

• Prepare and file US federal tax returns, state and local tax returns, international forms, Schedule K-1s, and other relevant elections and disclosures for US / non-US corporations, US / non-US partnerships and individuals
• Assist with Foreign Account Tax Compliance Act (FATCA) analysis and compliance
• Assist with delinquent filing procedures, penalty abatement, reasonable cause statement and 9100 relief, etc.

Private Equity / Venture Capital Investments

• Structure fund formations
• Review Limited Partnership Agreement (LPA)
• Provide tax advice and tax planning for shareholders with respect to their portfolios’ investment in US company’s controlled foreign corporation (CFC) and passive foreign investment company (PFIC)

Tax Accounting

• Reviewing US tax accounting for financial reporting under US GAAP (ASC 740 and FIN 48) and IFRS

Mergers and Acquisitions

• Provide US tax due diligence services by identifying cash-tax exposures and suggesting remediations
• Structure complex cross-border transactions (e.g. acquisition structure, US tax elections (basis step-up, entity classification), IP planning, holding company location, debt / equity mix)
• Provide other related services including Sales and Purchase Agreement (SPA) reviews, Foreign Investment in Real Property Tax Act (FIRPTA) documentation-related matters, etc. 

Inbound and Outbound Investments

• Tax planning of non-US investment into the US
• Tax planning of US outbound investment in China / Korea
• Advising on the US federal and state tax consequences on acquisition, refinance/partial exit and exit structuring, take private transactions, IPO restructuring
• Holding company structure and IP planning
• Other US tax matters such as Employee Stock Ownership Plan (ESOP), license in and license out withholding tax obligations, trust, estate tax planning advice