International Tax

U.S. Citizens and Foreign Investments

When United States citizens invest or conduct business outside of the country, special taxation issues arise. This also holds true for foreigners investing in the United States. U.S. citizens conducting business or investing abroad must be knowledgeable of the particular foreign country’s tax system and how business or investments may be treated by their tax system. In addition, treaty provisions must be taken into account to determine if any available credits will be allowed and how the country has agreed to tax foreign citizens based on these treaties as well as how the income will be treated by the U.S.

Careful planning is needed when investing or conducting business internationally, and it is critical you understand precisely how certain items of income will be treated as well as the reporting and withholding requirements when repatriating money. Once again, tax planning will help you reduce your tax liability and ensure that you are compliant with applicable laws and regulations. The U.S. has a number of complicated filing requirements for people with foreign accounts, financial interests, stock ownership, partnerships, etc. If the required filings are not properly executed, penalties can be substantial. The Esquire Group professionals will evaluate your international investments to develop the most profitable strategy for conducting business abroad and determine filing requirements.