China and the United States signed the Overseas Account Taxation Act.

The United States and China signed the Agreement to Avoid Double Taxation and Prevent Tax Evasion on Income. According to the agreement, Chinese citizens holding green cards have paid taxes in China according to Chinese tax rates and only need to provide relevant tax payment certificates to the United States to be exempted from the corresponding amount of tax obligations. However, due to the different tax systems between the United States and China, green card holders may face the need to file taxes in both the United States and China or even pay income tax in both places at the same time. For example, Mr. Wang's annual income in China is US$200,000. After paying personal income tax to the Chinese government according to the Chinese tax rate, he must first remove the amount of income tax paid in China when reporting personal income to the IRS. If his income is lower than that in the United States, If the taxable amount is reached, you no longer need to pay personal income tax to the United States. However, if Mr. Wang’s income still needs to pay personal income tax in accordance with US tax laws and tax rates, he will need to pay back personal income tax to the US Internal Revenue Service.

According to the Foreign Account Taxation Act, all U.S. tax residents and foreign financial institutions must report the account information of their U.S. customers to the IRS. If uncooperative financial institutions have any income from the United States, , including investment disposal income and interest and dividend income derived from US assets, will be subject to a punitive withholding tax of 30%.

The main purpose of the United States’ Foreign Account Tax Act was to combat offshore tax evasion by U.S. citizens and green card holders. This bill was passed in 2010. The bill stipulates that eligible U.S. citizens and U.S. green card holders, those with foreign bank deposits of more than $50,000, and corporate households with policy assets of more than $250,000 must report to the IRS.

From 2014, foreign financial institutions must provide the IRS with overseas account information of U.S. citizens, green card holders, or U.S. tax residents who have been in the United States for more than 183 days in three years, otherwise they will be be fined 30% of their income in the United States. If a U.S. bank customer transfers money to an overseas financial institution, and the bank cannot obtain the information required by the customer in accordance with the Foreign Account Tax Act, 30% of the customer's financial transfer amount will be withheld.