I am an EB-5 investor in Mainland China and I am waiting for an appointment. I will receive the annual interest income from the project side every year, and the project side will withhold 30% every year, and then send K-1 and 1042-s to me. Then my accountant will declare in accordance with 10% in the 1040-NR tax declaration, and it is expected that after 6 months, the IRS will give the tax refund of 20% more withheld to my account. The project side should directly determine that I am a non-tax resident according to the information in the W-8BEN form I provided, and the preferential tax rate can be reduced or exempted. For non-tax residents in Mainland China, after providing W-8BEN form, is dividend income and interest income exempt or taxed at 10%? Should I fill in 1040NR if it is exempt?
You really need to consult with a licensed US tax advisor familiar with international transactions. You can take a look at the IRS website for guidance but even then you also need to examine the tax treaty with your home country to look for variations.
These are detailed questions which your accountant should answer.
You should get these questions answered by a tax attorney.
Your CPA should advise you on this question.
