You have probably heard mention of a tax treaty, but you might not be sure what one is or what it entails. Many countries have entered tax treaties with other countries to avoid or to mitigate double taxation. Depending on the agreement, it can cover a wide variety of tax topics, including inheritance taxes, value added taxes, income taxes, and other kinds of taxes. There are different kinds of tax treaties, such as bilateral treaties and multilateral treaties.
No matter where you live abroad, you need to pay your income tax if you are a citizen of America. Thus, if you move to the Netherlands, you need to know that the tax regulations still pertain to you and that there are Dutch tax regulations that you also need to follow. Thus, the United States and the Netherlands have joined a treaty to help its residents from double taxation and prevent income tax evasion. Read More
The consequence of growing international trade is that companies have to deal with different provisions and laws when they have dealings with other countries. Without a proper safeguard, companies have to use different accounting standards that are difficult to understand. Read More
Transfer pricing continues to be one of the most important matters facing multinational companies. The tax situation in any given country can affect whether or not your business sets up facilities or holds intellectual property ownership there. The IRS and numerous tax authorities worldwide are intensifying their focus on how corporations allocate income and expenses among related entities abroad because of the potential to shift income inappropriately to lower tax jurisdictions.