When U.S. companies invest, or conduct business outside of the U.S., special tax issues arise. Not only do you have to understand the tax laws of the country you are investing or doing business in, but how U.S. tax laws impact you. The U.S. has complex tax laws governing the taxation of U.S. persons with foreign investments or operations. For example, in certain situations it is possible for the U.S. shareholders of a foreign corporation to be taxed on the foreign corporation’s income – even if they didn’t actually receive any income from the foreign corporation.
Careful and meticulous planning is needed when investing or conducting business internationally. You need an expert in international taxation to determine the best structure for your business.
Some questions we can help with are:
- Should I open a branch or subsidiary?
- What entity is best for me?
- Should I consider a debt or equity investment?
- How will certain items of income be treated by the foreign country?
- What are the reporting and withholding requirements when repatriating money to the U.S.?
Additionally, tax treaty provisions must be analyzed to determine how the countries involved will tax income and what tax advantages may be available under the tax treaty. Our professionals have years of experience analyzing tax treaties and determining how they impact cross-border business.
Penalties can be substantial for noncompliance, so getting it right the first time is imperative.
Esquire Group will ensure your outbound transactions are structured right from the start and, in the event they weren’t, help you restructure to resolve any issues.