Today’s world has turned into a GLOBAL MALL. New Markets, New Vendors, online trading creates a new opportunity for the businesses.
One of the important factors a business has to consider is to secure the best labor at the lowest possible rate.
Dubai and the United Arab Emirates are the classic examples where you can set up an entity in any of more than 20 Free Zones and hire top of the line executives from any part of the world.
These offer opportunities but also creates complex tax issues both for employers and the employees.
U.S. has introduced FATCA which requires foreign financial institutions to report transactions pertaining to the U.S. Citizens.
Also, American businesses set up abroad need to comply with a number of reporting requirements.
Corporate Set up
It is very important that when you expand your business overseas from your native country, you need to create a corporate structure which is most tax effective. Similarly, when you hire an executive in an international location like Dubai, you should be fully aware as to what your obligations to comply with tax regulations of the country from where you are hiring the executive.
A team of GN Global will be there to assist you in creating tax efficient entity and will advise in complying with the tax laws of both your entity as well as your employees.
Does your business need an extra pair of hands to handle your accounting needs? No matter what the size of your business, we at GN Global can help. Have you thought of outsourcing your bookkeeping and other accounting needs?
Our professional team consists of CPA., Chartered Accountants and MBAs. They have a wealth of experience in the field. While outsourcing your accounting related jobs to us, you get extra bonus by introducing internal controls, tax savings advice and much more.
Our area of expertise includes but is not limited to:
Accounts receivable and payable
Assistance to your statutory or external auditors
Guidance and updates on your accounting software
Critical watch on your foreign currency transactions including calculations of gains and losses
Taxation of American Businesses Overseas
A foreign entity with a U.S. base will have to look into complex tax situations depending upon the locations from where they operate globally.
If it is a branch set up overseas, you need to pay tax on profits generated locally and also look into double tax treaty that country has with the U.S. If it is a corporate body overseas, you may have to see tax implications on dividends in the host country as well as in the U.S.
These are just a few of the tax issues we have highlighted. Our experts can sit with you and provide you full support to ensure that you comply with U.S. tax regulations applicable to your foreign entities.
Foreign Bank and Financial Accounts (FBAR)
If you or your foreign-based entity have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other types of foreign financial account, exceeding certain thresholds (currently U.S. $100,000), you may be required to report accounts to the U.S. tax authorities.
Violations may attract severe penalties.
GN Global, your trusted tax advisor, will be there to help you determining your filing requirements. Our experts will ensure that FBAR is completed and filed on time.
Renunciation of U.S. Citizenship Abroad
Transfer pricing happens whenever two companies that are part of the same multinational group trade with each other: when a U.S. based subsidiary of NIKE, for example, buys something from China based subsidiary of NIKE. When the parties establish a price for the transaction, this is transfer pricing.
If two unrelated companies trade with each other, a market price for the transaction will generally result. This is known as “arms-length” trading because it is the product of genuine negotiation in a market. This arm’s length is usually considered to be acceptable for tax purposes.
But when two related companies trade with each other, they may wish to artificially distort the price at which the trade is recorded, to minimize the overall tax bill. This might, for example, help it record as much of its profit as possible in a tax haven with low or zero taxes.
These factors drive intensified scrutiny of transfer pricing arrangement by the U.S. tax regulations.
If you have operations at multiple locations and trade between these locations, the risks of getting caught for scrutiny are very high and real. These may be:
(a) A very large tax reassessment at the originating location or at the locations where goods are sent, or services are rendered. There may be significant penalties, intent or overdue taxes and double taxation if double tax treaties are not available to you in that country;
(b) Uncertainty about your Global tax burden and expensive, time-consuming conflicts with the regulatory authorities;
(c) Your reputation may be at stake and there may be damage to your brand if regulatory authorities impose sanctions against these brands.
GN Global with the extensive international network of tax and legal experts are well positioned to advise you in more than 84 locations worldwide.