If you are a United States citizen who lives and works overseas, you might be wondering if you must pay U.S. income taxes or how you will be taxed. If you are a U.S. citizen or a resident alien who lives elsewhere in the world, regardless of where you live your income received from around the world is subject to U.S. income taxes. There might be exclusions or credits that apply. To learn more about these credits and exclusions, refer to Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.
Are you nearing retirement age and the prospect of retiring overseas is something that you are entertaining? Before you decide to go overseas to finally settle into your new life, it would be a good idea to consider the tax implications of retiring abroad. Read More
Global Intangible Low-Tax Income – Working Example. Executive Summary
Does your Corporation own greater than 50% of a business established in a foreign country?
Beginning January 1, 2018, US entities will be subject to a tax on Global Intangible Low-Tax Income (GILTI) of their subsidiary controlled foreign corporations (CFC).
The income and tax associated with GILTI is eligible for certain deductions and foreign tax credits for US Corporations only. Read More
Establishing your own business presence in the United States can be tough especially if you are a non-resident. Aside from exploring an entirely new market and environment, there are also various things that you need to do in order to launch your business on foreign soil. There is no hard and fast rule to become successful in the United States. But, one of the most effective strategies that you can do is establishing a close relationship with a local executive who is also interested in your business.
Navigating the US tax system can be a daunting task especially if you are not a citizen of the United States. Whether you are a resident in the US or an expat working in the US, it is important to know how the tax system works. Failure to understand the specific tax codes can lead to problems such as paying more in taxes and running into issues with the IRS.
When it comes to taxes, everything should be accounted for–from income to investments. If you own foreign financial assets, it is important that you declare your accounts on your taxes. Under the tax code, financial assets include any financial account that you have maintained by a foreign financial institution. It can be a stock, securities, or any financial tools that are not from the United States.
How International Enterprises Can Maximize Tax Deductions and Credits
Establishing an international enterprise provides a lot of benefits to companies regarding market expansion and internalization. But aside from market expansion, international enterprises can also enjoy a lot of tax benefits in the form of reduced tax payment and asset shielding.
In my previous article, How to Start a Global Sales Strategy for Your Exports , I discussed some significant incentives and resources Maryland offers manufacturers that are considering an export initiative. This second article of the three part series will look at tax structures for exporters and the incredible tax savings these structures provide.
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.