International Tax Services

Some examples of when it may be a good time to consult an international tax advisor is if you hire a consultant or employees outside of the U.S., establish a foreign subsidiary, collaborate with a business based outside of the U.S. in a joint venture type transaction, borrow money from a non-US lender, or even purchase real estate in a foreign country. Each or these transactions generate filing and compliance responsibilities for the U.S. taxpayer.

Withholding Taxes: International withholding taxes are imposed by source-countries intent on collecting their share of tax revenue. Transactions like dividends, interest, and royalties are typically subject to foreign withholding taxes. Businesses that fail to effectively manage withholding taxes can be subject to double taxation or penalties. Compliance and strategic planning are essential for businesses and individuals with foreign income.

Foreign Tax Credits (FTCs): FTC’s allow businesses and individuals that make payments to foreign governments to offset those payments against their domestic tax payments; thereby avoiding double taxation. Proper documentation and compliance with both domestic and foreign tax laws are vital to claim FTCs and avoid difficulties complications during tax filings.