(ECNS) -- The number of Chinese who choose to give up their American green cards or not pursuing citizenship even when they are qualified has been on the increase, China Press reported on Wednesday.
Statistics released by the Naturalization Collaborative, a non-government organization in the US, show that in 2012, about 150,000 Chinese green card qualifiers in San Diego didn’t apply for American citizenship.
One reason is that they are keeping their Chinese citizenship, since the benefit of becoming an American citizen has been reduced due to the country’s fresh tax policy.
A new law, the Foreign Accounts Tax Compliance Act (FATCA), requires financial institutions around the world to report directly to the US Internal Revenue Service (IRS) all the assets and incomes of any US citizen with $50,000 US dollars on their books. The US could withhold 30 percent of dividends and interest payments due to the banks that don't comply.
It's an attempt by US authorities to recover an estimated $100 billion a year in unpaid taxes on US citizens' assets overseas. Unlike in other countries, Americans are taxed not only as residents of the US but also as citizens, wherever they live.
New data from the US Treasury Department shows that a record 2,999 Americans gave up their citizenship or terminated their long-term US residency in 2013. That was more than three times the number in 2012, and greater than the combined total for 2011 and 2012.
