Who is affected by overseas tax rules?
Any company with an international transaction could be subject to some important international tax rules. A transaction can include importing or exporting at the simplest level. When a company ventures overseas and either establishes an office or subsidiary or even sends employees overseas to work these transactions can introduce significant international tax implications. What is one of the first concerns you address when you consult with a business that has overseas transactions? We take a look at their entity structure, from the U.S. and foreign perspectives. Then we pick the type of entity that gives them the best tax advantages and will simplify their reporting. A company that establishes itself overseas can elect to set up a foreign corporation in that location, or it can set up a U.S. branch. The taxation of those two structures is different. For example, foreign corporations may defer their U.S. taxes until their earnings are repatriated into the U.S. On the other hand, earning
