[amurui]

Hi, I am a citizen of China. When I came to US two year ago, I got my J-1 visa in Singapore US embassy. According to US-China treaty, J-1 visa holders are exempt from US income taxes for three years. However, the international officer of my school told me that I was not applicable to this treaty because I entered US from Singapore. That means I will lose a lot of money in three years. It is ridiculous. I am still a citizen of China but not Singapore:mad:. Does any expert here know the US policy:confused:? Thanks.

[Five Rings]

An interesting question amarui.
It is a treaty issue. Article 4 (residency) of the China/US treaty states:
1. For the purposes of this Agreement, the term "resident of a Contracting State" means any person who, under the laws of that Contracting State, is liable to tax therein by reason of his domicile, residence, place of head office, place of incorporation or any other criterion of a similar nature.

We now move to the very first criterion of residency which is "domicile". What does that mean under US interpretation?
"You have only one domicile even if you have more than one home. Your domicile is a permanent legal home that you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. The question of your domicile is mainly a matter of your intention as indicated by your actions. You must be able to show with facts that you intend a given place or state to be your permanent home.
Factors considered in determining domicile include:
Where you pay state income tax, Where you vote, Location of property you own, Your citizenship, Length of residence, and Business and social ties to the community
(Pub.555)

You are a citizen of China who, at some point, was temporarily resident in Singapore. Now you intend to work in the US. That does not mean you have given up your intention to one day return to your ancestral home in China, a successful person, and be welcomed back by your parents, brothers, sisters, nephews, nieces, cousins, and friends. And, once you return, I am sure the Chinese IRS will want and can tax you as stipulated in the Article mentioned above.

I believe the "international officer" at your school to be in error on this issue for the following reason:
From what you have stated Article 19 governs your situation:
"An individual who is, or immediately before visiting a Contracting State was, a resident of the other Contracting State and is temporarily present in the first-mentioned Contracting State for the primary purpose of teaching, giving lectures or conducting research at a university, college, school or other accredited educational institution or scientific
Research institution in the first mentioned Contracting State shall be exempt from tax in the first mentioned Contracting State for a period not exceeding three years in the aggregate in respect of remuneration for such teaching, lectures or research."

The first line is the most important. Note that the provision states "An individual who is OR immediately before... etc. You are a resident of China by virtue of your citizenship and domicile. That you were temporarily in Singapore or any number of other countries has no bearing on this treaty provision no more than the fact that you are temporarily in the US will exclude you from the benefits of treaty.

[AtlantaTaxExpert]

I concur with Five Rings, whose expertise I know to be exceptional.

What would REALLY support your argument would be the fact that CHINA (not Singapore) issued your passport.

If the international officer persists in his interpretation and taxes your income, you still can file Form 1040NR with Form 8833 and request a total refund of all federal income taxes under Article 19 of the U.S.-China Tax Treaty.

[Five Rings]

To really bulletproof your contention that your domicile is China, if you can or could return to China at any time and have a dwelling there (even if it is a room in a relative's house) set aside for your own personal use then I believe there could be very little argument on this question of domicile. Open a bank account, get a drivers license, join a club, in other words establish a substantive presence in China.