Canada Visa Application Form
EB-5 Investor Visa (U.S. Taxation)
Co-written by Jordan L. Eftekari, Atty.
On November 2, 2007, the Wall Street Journal published an article: "Do you have $ 500,000? The hopes of the United States (5 EB Government Affairs Program Offer Investors Green Cards for Job Creation). "
A federal program known as EB-5 (Immigrant Investor Visa "), Administered by U.S. Citizenship and Immigration Services (USCIS), encourages foreign investors to invest their lifestyle to United States
Morrie Bereza, head of the EB-5 from the USCIS, said: "The opportunity is really beautiful people who want to live and bring their energy to the United States together, and creates economic growth and especially jobs for Americans. "
There are 10,000 EB-5 visas available each year, only 867 issued in 2007. On the basis of arbitration favorable currency (euro / dollar, British pound sterling and the dollar) the EB-5 Visa is a cost-effective, very effective immigration to the United States
An investor (And their immediate family) can get their green card (permanent residence USA) with an EB-5 visa, to invest $ 500,000 in a government approved Regional Centre (currently more than 30 regional centers). Investors receive the security of U.S. permanent residency applications without any visa repeated. Citizenship can be obtained after five years.
Investment can be made in one of three ways with the EB-5 visa:
- Invest $ 1,000,000 employees in a company and hire ten across the United States or
- Invest $ 500,000 and hire ten employees in a region where unemployment exceeds the national average of 150% of the rural population is below 20,000, or
- Invest 500,000 dollars in a government designated Regional Center and avoid direct employment.
The investment of $ 500,000 is the cheapest way to satisfy the visa requirements to receive a permanent green card after a period of two years. Although the first two types of lead investment a permanent status of the green card, which require an additional sample at the end of the period of two years, ten persons have qualified maintained employment in specific jobs in the area.
The minimum investment period is approximately three years. Once Investors can apply to emigrate to the "conditions" removed after 1 year and 9 months in the United States. The treatment takes up to six months. "Moving and Conditions "means the investment is more related to the EB5, and is the largest investor then free to sell the investment.
The EB-5 Investment visa can be a passive investment, which does not require active management company. With a green card through investment Visa EB-5 investors have the opportunity to accept any job, managing a business, retire and live anywhere in the United States, with the advantages enjoyed by U.S. citizens including ownership or education.
(2) History of the EB-5 Program
The EB-5 Visa program began in 1991. In 1991, the investor of an EB-5 visa was necessary to make an investment Minimum
- $ 1,000,000
- $ 500,000 (in a specific area unemployment)
Necessary investments creation of 10 jobs.
During the first two years, the only program created for those who were willing to invest and create your own company to produce at least ten jobs. However, in 1993, the government began to designate certain regional business centers. original business was located in a region where unemployment exceeds the national average of 150% or the rural population fall below 20,000 in the regional center designation and were then eligible to be duly approved by the CIS (former INS).
Between 1993 and 1998, companies have been designated as regional centers. All these companies were competing for foreign capital by foreign investors participating in the EB-5 Visa program. The competition that existed for foreign capital and the new EB-5 Visa program leads to abuse the system. Most companies do not offer sound investments and were really in business to collect fees rather than fund an operating business. Many investment opportunities did not raise the full investment capital of $ 500,000 or the number of contract employees needed.
Because of the CIS wanted to end abuses of the program. In 1998, the IEC misapplied its rules retroactively revised individuals who already approved petitions. CIS attempts to revoke these visa petitions. It started the dispute. The subsequent litigation put the program on hold for the period 1999-2002.
In 2002, Congress passed a new law to protect pre-1998 investors. In addition, in 2002, in a case known as "Chang" 9th Circuit Court of Appeals ruled that the IEC can not apply new rules retroactively. In August 2003, CIS has begun to approve a center regional EB-5 visa petitions for the first time since 1998.
The EB-5 program was amended in 2002 by the following law (art. 107-273 Pal 11037-2002):
"A regional center will have jurisdiction over a limited geographical area, which is described in the proposal and consistent with the aim of concentrating investment in certain economic areas combined. The establishment of a regional center may be based on general forecast, contained in the proposal, in terms of commercial firms that receive foreign investment, jobs created directly or indirectly as a result thereof, capital investment and other positive economic effects such as capital investment, the aura.''
Since 2002, investors can invest $ 500,000 in a regional center (in a specific area unemployment), without the need to create 10 jobs. For the investment of $ 500,000, an investor receives a "conditional green card."
In January 2005, to improve and expedite EB-5 regional center related applications the USCIS has established a Regional Centre of investors and the unit (UCRI). Unit is the sole legal jurisdiction of the Regional Centre for applications under the Immigrant Investor Pilot Program for approval, the refusal and requests for evidence (RFE). The unit also oversees and monitors the activities of regional centers to ensure compliance with the terms, scope and conditions to its approval or designation under their approved business plan and methodologies for the creation of indirect jobs. Finally The unit develops and EB-5 programs, policies and changes or improvements to the management rules of the USCIS.
IEC is consistently pursuing its efforts to streamline and organize the EB-5 program. Until January 2009, there were three different locations for filing visa / Or requests of the regional center. Currently, the IEC has established a unit of the California Service Center and the file is used as a seat for EB-5. The center is composed of judges trained dedicated to EB-5 awards. By combining the offerings in the center, USCIS expects to be able to reduce the overall processing time and better control of the EB-5 related rewards.
(3) United States tax matters – The non-resident aliens
U.S. Rates (Non-Resident Aliens)
A nonresident alien is subject to U.S. estate tax assets in their taxable property in the United States (IRC § 2101 (a) 2106 (A)).
For U.S. estate tax, both the actions of a U.S. corporation (IRC § 2104) and real estate U.S. Reg treasurer (§ 20,2104-1 (a) 91)) are "located" in the U.S.
The non-resident aliens are entitled to:
- unlimited deduction for transfers to spouses of U.S. citizens (IRC § 2106 (a) (3)).
- A "$ 60,000 unified credit, which allows a nonresident alien to transfer only $ 60,000 value of property tax free.
- Deduct a portion of expenses, debt, taxes and loss of their gross properties (IRC § 2106 (a) (1)), certain charitable deducted from their gross land (IRC § 2106 (a) (2) (A)), but if they disclose their status throughout the world as a tax return property (IRC § 2106 (b)).
A person who acquires the property of a deceased nonresident alien receives "reinforcement" basic property (ie the same conditions as the fair market value of the property on the date of the deceased death), regardless of whether the property was registered in the gross estate of a nonresident alien for tax purposes of property (IRC § 1014 (b)).
Generation Skipping Tax
nonresident aliens are subject to tax skip generations, but only in order gifts Gift tax or property (eg, no gift tax in the life "jumps" intangibles).
U.S. Gift Tax (nonresident aliens)
A nonresident alien is subject to gift tax when you donate tangible personal or real property located in the United States (IRC § 2501 (a) (1), § 2511 (a), very Reg § 25,2511-1 (b)).
A gift of U.S. real estate is subject to tax donations (treasurer Reg § 25.2511-3 (b) (1)).
A gift of U.S. intangible property is not subject to gift tax (IRC § 2501 (a) (2)).
Non-resident aliens are not entitled to a unified credit ($ 1M in donations tax deductible.)
The non-resident aliens are entitled to:
- $ 13,000 annual exclusion gifts to anyone.
- exclusion gifts unlimited to cover the cost of education or health.
- excluding grants unlimited spouses of citizens.
- The $ 133,000 (2009) annual exclusion for gifts to spouses are not citizens (see: Rev. Proc 2008-66, IRC § 2503 (b) 2503 (e), Treasurer Reg § 25.2523 (i) – (1) (a), (c) (2)).
- Unlimited number of goods to the charity of the United States free of gift tax (IRC § 2522 (b)).
- Unlimited number of assets to a trust or foundation, if the gift must be used in the U.S.
- Basis of property acquired as a gift a nonresident alien determined in the same manner as the basis of property acquired by gift from a foreign resident (IRC § 1015, 1015 (D)).
U.S. tax on income (nonresident aliens)
foreign Non-residents are subject to U.S. income tax on U.S. source: (1) Result APDF, (2) effectively connected income.
(1) Income APDF "
U.S. source "income APDF, either., Fixed or determinable annual or periodic income (eg, salaries, wages, rents of interest, dividends and royalties).
A nonresident alien is subject to U.S. federal APDF income tax rate tax of 30% (Without the benefit of any deductions related) IRC § 871 (a), 873 (a). Tax payment of 30% of income is deducted at source of income (IRC § 1441).
"APDF income includes:
- Proceeds from the sale intangible property (patents, copyrights or other intangible assets) (IRC § 871 (a) (1) (D)).
"APDF income" does Excludes:
- Gain on sale of shares of a national society (Treasurer Reg § 1871-7 (a) (1)).
- Interest on bank deposits and "interests" of the portfolio (IRC § 871 (h) and (i).
Tax Treaties income can reduce or eliminate the 30% flat tax on income APDF.
(2) income effectively connected
Income that is "effectively connected with a trade or business.
A nonresident alien who is engaged to a U.S. trade or business is subject to federal income tax in the United States in its "effectively connected income, the tax rate U.S. citizens and resident aliens (IRC § 871 (b)).
For a nonresident alien, who has a U.S. trade or the company is the basis of income tax of the United States. Income tax is U.S. imposes If a nonresident alien is owning a business a permanent establishment in the United States, or a fixed place of business (eg, place of management, branch, an office, a factory).
If the nonresident alien is a resident of a country with which the U.S. has concluded a tax treaty on income, the treaty may reduce or eliminate the federal tax U.S. effectively connected income.
A nonresident alien must file IRS Form 8833 to disclose the use of a tax treaty of the United States for an exemption from U.S. tax on income effectively connected.
(4) United States Tax Treaties
In the 21st century, globalization has produced the world the following results:
- Instant global communications
- investors multinational (with transnational families)
- The international mobility of people on a scale never imagined
Investors international immigration problems facing the United States (Ie) and the income, assets and gift issues legal presence, the risk of "double taxation" (in the U.S. and their country of citizenship) the "potential triple tax" (if you have a third country of residence).
United States currently has 61 tax incomes and inheritance and gift taxes 18 treaties (see below). A tax treaty is a bilateral agreement between the two (2) country, which country changes its tax laws for the benefit of all.
Tax treaties with three (3) objectives:
- Double taxation
- Prevent discriminatory tax treatment of a resident of a country signatory
- Helped prevent tax evasion and fraud reciprocal (see: Rev. Rul. 91-23, § 2.01, 1991-1 CB 534)
U.S. goods and gift tax treaties
Under U.S. Federal law estate and gift tax, is taxed as a foreign resident U.S. freight subsidy and once you have set a U.S. address. A stranger who acquires a U.S. Home for Life in the U.S. (even for a short period of time) with the necessary intent to remain indefinitely (Treasurer Reg § 20.0-1 (b) (1) Treasurer Reg § 25.2501-1 (b))
An alien who establishes a U.S. address, is subject to:
- A gift from U.S. tax on the donor's right to make the gift (transfer of assets) (IRC § 2501 (a))
- A tax American products the transfer of assets liabilities (Active worldwide) (IRC § 2001 (a))
Since 1976, a tax rate only applies to assets transferred to both goods and donations (tax-free donations up to 1 million, tax Property release $ 3.5 million (2009), which includes donations).
Top tax rate (2009): 45%
United States has 18 properties and gift tax treaties (see below). To be eligible for tax benefits under treaties, foreigners must have a place in the United States is processed or U.S. Country, country of origin (or choice), at the time of his death or at the time of donation.
The treaties contain special tax rules that could reduce U.S. foreign policy federal goods and gift tax liability. The treaties are aimed at avoiding double taxation on the transfer of the asset itself (which is the subject of an inheritance or gift).
U.S. property tax agreements are either complete (property tax only) or Total (estate and gift taxes). Although not exhaustive, Treaties
Treaties do not focus exclusively on property taxes supplemented by providing "rules situs" for certain property and determine which country has jurisdiction to impose taxes on assets. deduction of taxes (and specific exceptions) are authorized under the law of the country which imposes the tax.
Estate tax treaties provide tax credits to avoid double taxation. Each country grants a credit against their taxes under a formula specified in the Treaty in respect of property in the two countries, or both countries.
Comprehensive Treaties address both Estate & Gift Tax jurisdiction and determine the principal residence of the institution behind (at home). Location of the primary application that determines the jurisdiction of the estate, goodwill of a permanent establishment, and a fixed base for the provision of personal services.
These treaties provide the "competent authority" in resolving disputes tax (and the exchange of information), address double taxation tax credits, and can provide a U.S. Capital Goods tax for property passing to the surviving spouse.
If a treaty contains a safeguard clause, the United States may levy a property agent died, or gifts from donors, as if the treaty was not in force.
Revenue and Tax Treaties gifts (18)
- Treaty of Australia for property tax
- Treaty of Australia gift tax
- Estate and Gift Tax Treaty Austria
- Canadian Estate Tax Treaty
- Denmark and the treaty rights Goods Donation
- Real Finland Tax Convention
- French Estate and Gift Tax Treaty
- German estate and gift tax treaties
- Greece Property Tax Convention
- Treaty Ireland for property tax
- Real tax treaty with Italy
- Japan and the Treaty of gift tax assets
- Real tax treaty Netherlands
- Norway Real Estate and inheritance tax treaty
- South Africa Property Tax Treaty
- ownership Sweden, inheritance and donation tax treaty
- Switzerland and the Estate Tax Treaty succession
- United Kingdom and the Treaty of property tax on donations
U.S. Income Tax Treaties
Under U.S. federal tax laws on rents, an alien is being taxed as a resident alien (subject to U.S. tax income in the world) or a non-resident alien (subject to U.S. income tax U.S. source income).
Non-resident aliens: resident tax U.S.
An alien is considered a resident alien (tax U.S.) if:
- It is a lawful permanent resident of the United States at any time during the calendar year (ie color has a green card ").
- Meet the criterion of "significant presence" (currently in the United States for 122 days a year a period of 3).
Substantial presence test
An alien meets the requirement of "significant presence" for one year calendar (year) if:
- It is the United States at least 31 days during the year.
- The sum of the number of days in the U.S. in the current year and two preceding calendar years is equal to or more than 183 days (183 days of trial ").
- For the day, "183" test each day in the U.S. this year is counted as one full day. Every day the United States in the previous calendar year first is counted as 1 / 3 of a day, every day spent in the second preceding calendar year is counted as 1 / 6 of day (IRC § 7701 (b) (3) (A) (ii)).
"Substantial presence test": the connection exception
An alien meets the substantial presence test can not be considered a U.S. tax resident if:
- It is present in the United States less than 183 days each calendar year.
- He maintains a domicile in a foreign country throughout the year.
- He has a closer connection with foreign countries (ie, its tax residence) during the year underway.
- He timely file IRS Form 8840, not called a "green card" (IRC § 7701 (b) (3) (B) and (C)).
The United States has concluded 61 tax treaties income (see below). To be eligible for benefits under a tax treaty on income, a person should be considered a resident of the United States or other countries party to the Treaty ("The Contracting State").
U.S. Model Income Tax Treaty (Article 4) (1) defines the term "resident of a Contracting State" as "any person who, under the laws of this state is subject to tax in the State by reason of their domicile, residence, nationality, place of management, place of incorporation. "
If the foreigner is considered a tax resident and a U.S. resident partner treated ("double residence), tax treaties contain "tie" provisions determining the residency status of residence double taxation as follows:
- tax resident in the country of permanent residence.
- If the permanent address in both countries, the tax on residents in the country "Center of vital interests" (and personal economic interests).
- If the center of vital interests can not be determined, having its domicile in the country where they live as usual.
- If the residency rule in Generally, in both (or not) the country is a tax resident of country nationals).
An alien who seeks the benefit of a treaty, be considered a non-resident, are subject to federal income tax in the United States as an alien non-resident.
A nonresident alien based on a tax treaty of the United States for a tax exemption of the United States which is effectively connected with a U.S. trade or business is required to submit IRS Form 8833 to disclose the tax exemption for dependent (IRC § 6114, Treas Reg 301.6114-1).
The advantages of income arising from treaties are available only for a "resident" of a country and the rules individual may apply for determining the residence of trusts, estates, and hybrid streaming entities. relief of double taxation is that it offers a resident addressed by specific provisions on the allocation of taxing rights between the items of income the two countries that are parties to a treaty, and by a "treaty" tax credits. Administration of the provisions of the procedure a mutual agreement and exchange of information and assistance in the collection are designed to prevent tax avoidance and evasion.
Special numbers Treaty residence are made by U.S. citizens and aliens admitted for permanent residence in the U.S. (ie the "Green Card"). The U.S. taxes its citizens and residents of their worldwide income, wherever they reside. These people may be U.S. Tax on income of residents (effects of a tax treaty), although physically residing outside the U.S.).
Under the clause of a treaty on savings, reserves in the United States the right to tax its citizens and residents (as determined under a treaty) as if the treaty has not entered into force. Accordingly, U.S. citizens and residents can not use income U.S. U.S. tax treaty to reduce tax on income.
The income obtained through a transparent entity for namely tax (, partnership, limited liability company, grantor trust) is deemed to be derived by a treaty resident if the country of residence considered under this item of income person.
In the case of non-grantor trusts and estates, treated "residence" (ie income tax liability) is determined by the domicile, residence, place of management of the estate or trust. The trust or estate is subject to tax in the treaty country (if the income is not taxable in the hands "of the trust / property or their dependents).
A non-resident partner of a partnership the United States (Commercial or business in the U.S.) is subject to tax U.S. partners share of income (under section branch profits of a tax treaty with U.S. income). Product the sale of a social part will be taxed by the United States the extent of income attributable to the assets of the Association (United States v. Donroy 301 F.2d 200 (9th Cir 1962), Unger v. comm 936 F.2d 316 (DC Cir. 1991), affirming TC Memo 1991-15, Rev. Rul. 91-32 1991-1 CB 107).
The non-resident shareholders U.S. companies are subject to a withholding tax on dividends to 30% of U.S. legal authorities who are not "really concerned" business income and paid to a (non-resident IRC § 871 (a), 881 (a), 1441 (a)). The retention rate may be reduced by a treaty.
Income tax treaties to avoid double taxation by:
- Allocation of primary enforcement jurisdiction a resident to a treaty partner.
- Limit the taxes of the country of origin of income.
- Provide a credit for foreign tax in the country of residence of the items of income taxed by the country of origin and residence.
United States tax treaties, royalties (owned intellectual property rights, patents, trademarks) is taxed by the country of residence of the owner (Ie the country of origin of the attributes of income to another owner residence).
United States tax treaties, tax is staying home for rent real estate (ie the country of origin has the primary law of the tax.) Country of origin has no exclusive right taxation, double taxation depends on the country of residence, granting a tax credit of tax in the country.
Under U.S. domestic tax rules of the United States reserves the right to tax income derived by a non-resident the sale of U.S. farm real estate companies (IRC § 897) Profit. by a non-resident from the sale of personal property are "foreign source" and no liabilities under the U.S. (IRC § 865).
Under the tax treaty the United States, gains from the sale of the subject property for tax in the country where the property is located. The country has the primary right to tax is not an exclusive right. Prevention of double taxation depends on whether the residents of country grants a tax credit on the country of origin.
The labor income may be taxed in the country of residence. Income from personal services (ie not service employees) are imposed the country of origin and corporate profits "from these personal services. The taxable income includes corporate profits all revenues from the personal services rendered by the partnership and income from ancillary activities implementation of these services.
For employees, compensation for personal services (eg, dependent personal services) may be imposed by country of residence of the employee and country of origin, since the services are performed in the country of origin (U.S. model tax treaty art. 14 (1)).
The country reserves the right to tax all payments for dependent personal services. If three (3) conditions are met, based on income personal services are exempt from taxation countries of origin:
- The employee is in the country for less than 183 days during the year they occur naturally.
- The allowance is paid by a Employers who do not reside in the country of origin.
- The compensation is not a deductible expense by a permanent establishment which the employer has in the country of origin (U.S. Income Tax Treaty type of art. 14 (2)).
Athletes and actors
Under the American model art addresses the income tax 16 (1), the performance income of an athlete or artist may be taxed in the country of origin if the gross amount paid by the artist or athlete to exceed $ 20,000 for the tax year. If gross income exceeds $ 20,000, the total amount paid to the athlete or artist may be imposed (and not just the excess $ 20,000). may be imposed under Article 16, even if the performer were exempt from tax under Article 17 (Business Profits) and Article 14 (Income from Employment) of the United States Model Income Tax Treaty.
If an employer "company provides services to the artist / athlete 's income is taxed in the country in which the activities exercised unless the contract under which the personal services are performed Corporation allows the company designated the person who must perform personal activities (16 U.S. Model Treaty (2)).
Income is deemed to run the company if it controls the employer or is entitled to receive gross proceeds in connection with the services of an interpreter (Article 16).
Tax Credits for Foreign Affairs
Under the Model Convention, the United States as the country residence offers its citizens and residents a credit for tax income taxed by treaty partners to avoid double taxation. The tax credits contained in the Treaty (Article 23 (1)). United States Legal foreign tax credit rules determine the amount of tax credit (U.S. Model Treaty Article 23). U.S. grant credit for foreign tax credit under item Treaty, even if a claim that would otherwise not be available to U.S. foreign legal rules credit.
U.S. Income Tax authorities to give permission for Treaties of each country to deal directly with them to resolve tax disputes for the exchange of information and mutual assistance in recovery (Model Treaty art. 25: Mutual Agreement Procedures, Article 26: Exchange of information).
Treaties Income Tax (61)
- Treaty of Australia Income Tax
- Austria Tax Treaty Income
- Bangladesh Tax Treaty Income
- Treaty of Barbados income tax
- Belgium Tax Treaty Income
- Bermuda Tax Treaty Income
- Treaty of Bulgaria Tax Revenue
- Canadian Tax Treaty Income
- China seeks tax revenue
- Treaty of Cyprus Income Tax
- Czech Tax Treaty Income Republic
- Treaty Denmark income tax
- Egyptian Income Tax Treaty
- Estonia Income Convention Tax
- Treaty of Finland income tax
- Treaties of France income tax
- Treaty Germany Income Tax
- Income Tax Convention Ghana (ships and aircraft)
- Treaty of Greece Income Tax
- Treaty of Hungary Income Tax
- Treaty of Iceland Income Tax
- Treaty of India tax income
- Treaty Indonesia Income Tax
- Treaty Ireland income tax
- Income Israel Tax Treaty
- Treaty of Italy Income Tax
- Treaty of Jamaica Income Tax
- Japan Tax Treaty Income
- Jordan Income Tax Treaty (shipping and air transport)
- Kazakhstan Tax Treaty Income
- Korea income tax treaty
- Latvia Treaty of income tax
- Treaty of Lithuania Income Tax
- Treaty of Luxembourg income tax
- Treaty of Malta income tax
- Mexico Treaty Income Tax
- Morocco Tax Treaty Income
- Treaty low income tax
- New Zealand convention Tax
- Norway and the Treaty of Property Tax Revenue
- Pakistan Tax Treaty Income
- Revenue Philippines Tax Treaty
- Treaty of Poland Income Tax
- Treaty Portugal income tax
- Treaty of Romania Income Tax
- Treaty of the Russian income tax
- Slovak income tax treaty Republic
- Treaty Slovenia income tax
- South Africa Tax Treaty
- Income Tax Convention in Spain
- Sri Lanka Tax Treaty
- Treaty of Sweden income tax
- Treaty of Switzerland income tax
- Income Tax Convention of Thailand
- Trinidad and Tobago income tax Tratado
- Treaty of Tunisia Income Tax
- Turkey Tax Treaty Income
- Treaty of Ukraine Income Tax
- UK Income Tax Treaty
- Soviet Treaty Income Tax
- Venezuela Income Tax Convention
About the Author
Gary S. Wolfe is an international tax attorney specializing in asset protection, IRS tax audits and international litigation. Please see http://gswlaw.com for more information.
Where do I send my application for Canadian Visa?
Hello, I am interested in visiting Canada from the Philippines. I have the form of a temporary visa, but do not see an address. Does anyone know where I can find the address or where to send the form. Thank you
Hi, I'm getting ready to go Canada as well, and I am from Malaysia. I did some extensive research on Canada, and found the information you need can submit visa applications to Immigration Canada office in your country. Check this site to know where is this place in their country of immigration http://www.cic.gc.ca/english/information/offices/apply-where.asp Hope I helped. Enjoy your trip!
Korean cheater; hyun-chung Ji ???