As our economy becomes more global, international business transactions are becoming more commonplace. But as you invest your money around the world, it’s critical to understand international accounting standards. Millan & Company can help you help you understand the rules as they apply to your circumstances, from best practices in your foreign business ownership, to tax planning and compliance, to ITIN registration.
Foreign Tax Acts
As a U.S. citizen or resident, you are generally taxed on your foreign income, but there are certain foreign tax credits and exclusions that may apply, which could lower or eliminate taxes on foreign income. There are also certain tax treaty applications, based on the country in which you reside or in which you earn income.
The FIRPTA (Foreign Investment Real Property Tax Act), passed in 1980, authorized the United States to tax foreign persons on dispositions of U.S. real property interests. Under the relatively new Foreign Account Tax Compliance Act (FATCA), there are also requirements for reporting income held in foreign bank and investment accounts, with severe penalties for non-compliance.
If you are involved in international business, contact Millan & Company to learn more about our tax services.