Offshore Tax with HTJ.tax

Relocating to France does not automatically invalidate your existing U.S. estate plan—but it can significantly affect how that plan operates. In this episode, we explain what happens to U.S. wills and trusts once you become a French resident and why a cross-border review is essential. ⚖️ 1️⃣ Are U.S. Estate Plans Still Valid? Generally, U.S. wills and estate planning documents remain legally valid...

If you live in France—or have lived there long enough—your estate may fall within the French inheritance tax system. In this episode, we explain how France determines when inheritance tax applies and how cross-border estates are coordinated. 🇫🇷 1️⃣ The Six-Out-of-Ten-Year Residency Rule France may impose inheritance tax where the beneficiary has been resident in France for at least six of the prev...

Becoming a French tax resident can significantly change how inheritances are taxed—especially when assets or family members are located abroad. In this episode, we explain when France taxes inheritances received by residents and how cross-border coordination works. 🇫🇷 1️⃣ The Six-Out-of-Ten-Year Rule France may impose inheritance tax on a beneficiary if they have been resident in France for at lea...

Charitable giving can become surprisingly complex when you move across borders. A donation that is fully deductible in the United States may not produce the same tax benefit once you are a French tax resident. In this episode, we explain when charitable donations qualify for relief in France—and why many U.S. charities do not meet the requirements. 🇫🇷 1️⃣ French Rule: EU / EEA Requirement Under Fr...

Cross-border family gifts often trigger confusion—especially between France and the United States. In this episode, we clarify who taxes what, how thresholds apply, and when reporting obligations arise. 🇫🇷 1️⃣ France: Tax Based on the Donor’s Residence France generally imposes gift tax based on the residency of the donor , not the residence of the recipient. If the donor is resident in France: • F...

If you are a French tax resident holding U.S. investments, your returns are not just subject to U.S. tax rules—they fall squarely within the French worldwide taxation system. In this episode, we explain how dividends and capital gains from U.S. securities are taxed in France, how the treaty operates, and where double taxation risks arise. 🇫🇷 1️⃣ France Taxes Worldwide Investment Income Once reside...

When U.S. deferred compensation is paid after you become a French tax resident, timing becomes critical. The interaction between U.S. taxation and French worldwide taxation can materially affect your effective tax rate. In this episode, we break down how the foreign tax credit mechanisms work—and why large lump-sum payments can change the outcome. 🇫🇷 French Tax Treatment: Taxed on Receipt Once res...

When income is taxed in both the United States and France, the solution is not exemption—it’s coordination. In this episode, we explain how the foreign tax credit mechanisms under the United States–France Income Tax Treaty operate in practice—and why the method differs on each side of the Atlantic. 🇫🇷 France’s Approach: Credit Based on French Tax Attributable France generally grants a foreign tax...

Cross-border executives often assume deferred compensation is taxed where it was earned. Under U.S. Section 409A , that assumption can be costly once you become French tax resident. In this episode, we unpack how Section 409A deferred compensation is taxed when the recipient is resident in France—and how double taxation is relieved under the treaty framework. 🇫🇷 French Tax Treatment: Taxed on Rece...

China’s 2018 ODI reforms (Order No. 11) strengthened supervision of outbound investments. In this episode, we clarify what investors must do before, during, and after an overseas transaction—and why compliance sequencing matters. Regulatory oversight involves: National Development and Reform Commission (NDRC) Ministry of Commerce of the People's Republic of China (MOFCOM) State Administration of F...

China’s Outbound Direct Investment (ODI) regime does not only classify projects as “encouraged” or “prohibited.” A significant middle category exists: Restricted Investments . These projects are not automatically banned—but they are subject to heightened scrutiny and approval requirements , particularly by the: National Development and Reform Commission (NDRC) Ministry of Commerce of the People's...

While China encourages strategic outbound investment, certain categories are strictly prohibited. Projects that threaten national interests or national security will not receive approval or filing clearance from regulators. Oversight is administered primarily by the: National Development and Reform Commission (NDRC) Ministry of Commerce of the People's Republic of China (MOFCOM) Without approval o...

China’s Outbound Direct Investment (ODI) policy is not neutral—it is strategically guided. Certain categories of overseas investment are actively encouraged, particularly where they align with national development priorities and the Belt and Road Initiative (BRI) . In this episode, we outline the sectors and themes that receive policy support. 🌏 1️⃣ Infrastructure & Connectivity Projects that...

In March 2018, China introduced significant reforms to its Outbound Direct Investment (ODI) regime. These changes—implemented through Order No. 11 —expanded regulatory oversight, tightened supervision of indirect investments, and clarified the treatment of sensitive sectors. In this episode, we break down what changed and why it matters. 🔎 1️⃣ Expansion to Indirect Offshore Structures Prior to 20...

China’s Outbound Direct Investment (ODI) regime has evolved from strict pre-approval controls to a more structured, risk-based regulatory system. In this episode, we explain how ODI works today, the role of key regulators, and what Chinese enterprises must consider before investing abroad. ODI operates within the broader policy context of China’s “Going Global” Strategy and the Belt and Road Initi...

China’s Outward Direct Investment (ODI) regime channels substantial capital abroad each year. For global wealth managers, trustees, funds, and private banks, this represents significant opportunity—but also heightened regulatory scrutiny. In this episode, we explore how ODI-related capital can be engaged lawfully and transparently , while managing cross-border risk. 🌏 The Opportunity Approved ODI...

China’s Outward Direct Investment (ODI) strategy operates on two parallel tracks: large-scale state-backed projects under the Belt and Road Initiative (BRI) and substantial overseas investment by private Chinese enterprises. While government-led projects dominate headlines, private Chinese companies invest nearly USD 200 billion per year abroad , making ODI a critical pillar of China’s global econ...

This episode explores how different jurisdictions interpret the CRS look-through rules for trusts that qualify as Reporting Financial Institutions (FI-trusts) —and why the divergence between Hong Kong and Switzerland matters. At the centre of the debate is a simple but technical question: When an equity interest in an FI-trust is held by an entity, must the trust always look through that entity—ev...

This episode looks at an often-cited but rarely analysed source: the OECD CRS FAQ on General Reporting Requirements , specifically Page 2, Question 7 , dealing with the look-through requirement. The key issue: Does the FAQ require look-through where an equity interest in a Financial Institution is held by another Financial Institution? 📘 What the OECD CRS FAQ Says The FAQ issued by the Organisati...

This episode examines a pivotal provision in the CRS Commentary— paragraph 178 (Section VIII, C(4)) —and its implications for trusts that qualify as Reporting Financial Institutions (FI-trusts). The key issue: When equity interests in an FI are held through a Custodial Institution , who reports? 📘 The CRS Commentary (p. 178, C(4) – Equity Interest) Under the Commentary issued by the Organisation...

This episode examines a core structural rule of the Common Reporting Standard (CRS): Financial Institutions are non-reportable persons and must not be looked through for due diligence purposes. We analyse the relevant CRS provisions and explore why this principle is central to the reporting framework. 🔎 The CRS Due Diligence Architecture Under the CRS issued by the Organisation for Economic Co-op...

This episode examines a narrow but consequential interpretative issue: Did Switzerland extend the CRS look-through rules for FI-trusts beyond what the OECD Implementation Handbook actually provides? The debate centers on Chapter 6.3 of the CRS Implementation Handbook , specifically paragraphs 254–256 (pp. 109–110) , dealing with trusts that qualify as Reporting Financial Institutions . 🔎 The Text...

The Core CRS / FATCA Principle: No Look-Through of Financial Institutions At the heart of both CRS and FATCA lies a fundamental architectural rule: Financial Institutions (FIs) are not treated as reportable persons. This is not accidental—it is structural. In this episode, we unpack why the system is designed this way and why requiring look-through of Financial Institutions can undermine the logic...

In this episode, we examine a controversial development in Swiss CRS practice: the extension of look-through obligations for trusts that qualify as Reporting Financial Institutions (FI-trusts). The issue centers on whether a trust must look through entity account holders—even when those entities themselves qualify as Financial Institutions . 🔎 The Legal Background Under the Common Reporting Stand...

Understanding who counts as an equity interest holder is central to how the Common Reporting Standard (CRS) operates for trusts that qualify as Reporting Financial Institutions (FIs) . In this episode, we break down the legal definitions, explain why this classification matters, and clarify a common area of confusion around look-through rules. 🔎 The CRS Framework: Why Equity Interest Holders Matt...