Simplify International Taxation Issues with Professional Assistance
International taxation issues are no simple matter. If you have a business that operates outside the U.S., if you spent time abroad and earned an income, or if you have holdings in foreign banks, you have to contend with the IRS in the United States, but you will also be required to deal with tax laws in the country you have a relationship with.
If you don’t seek professional help, you’ll likely deal with double taxation, which can dramatically decrease your income, finances, and more. If you don’t want to be taken advantage of, you should hire the help of a professional accountant with experience in the area of international taxation issues.
Understanding the tax laws at home and abroad
Understanding local and national tax laws is confusing enough. When you throw international tax laws into the mix, it becomes impossible to navigate on your own.
If you want to come out ahead, it’s important that you seek the help of a professional who has experience with international tax laws. For example, you may not have to pay U.S. taxes if your income is low enough, and you may be able to exclude housing reimbursements from your return.
The bottom line is that you can save, or spend, a lot of money on domestic and international taxes. If you don’t want to pay more than your fair share, a professional CPA is a must.
Comprehensive services will ensure you aren’t taxed twice
With so many ways to accidentally be taxed more than necessary, there are also many ways for you to save more than you could have imaged on international taxes.
The key is finding an accounting firm that offers comprehensive services. Services to look out for include:
- Global tax compliance through the use of status tracking, shared document management, centralized billing, and data analytics.
- Global mobility and planning that allows you to plan for and manage the rising costs of international business.
- Employee taxation regarding you and your employees.
- Transfer pricing that may or may not include a variety of documents and services such as IRS audit support, advance pricing agreements, qualified cost-sharing arrangements, intangible holding companies, licensing arrangements, and tax rate planning.
- Foreign business investments and taxation details that can include deductions, exemptions, and incentives.
If you have had any financial contact with any other country, it is important to allow a professional to help you with your international taxation issues. If you want to get the most out of your money, give us a call. We can ensure you aren’t taxed more than you should be, providing you with the incentive to continue doing business abroad.
International taxation issues FAQ
If I’m paying income tax in the country where I live, do I have to pay taxes in the U.S. too?
If you are still legally a citizen of the United States, you will be required to file taxes, even if you are paying taxes in the country where you live. The only way to get out of filing and paying taxes is to abandon your green card holder status, or to renounce your U.S. citizenship status.
Fortunately, there are many tax rules and regulations in place that can greatly reduce your tax burden in the U.S. Make sure you discuss all your options with a professional CPA.
How do I find U.S. tax assistance when living abroad?
If you’d like to meet with a tax professional in person, search online for an IRS-approved CPA where you live.
If you’re having a hard time getting the international tax help you need where you live, contact us. There are ways we can help you over the phone, and at the very least, we may be able to point you in the right direction.
With so many international taxation issues to deal with, why would I want to expand my business outside the U.S.?
With professional help dealing with international tax issues, starting a business overseas can be very lucrative. The most common reason to start a business overseas is market expansion. You may be able to make money at a faster pace in another location, diversifying your company can make it more immune to failure, and you may be able to find more affordable help.
Before expanding your business overseas, it is a good idea to meet with a professional CPA to discuss your options, as well as areas of the world that might be ideal.
What are a few ways I can save on taxes in the U.S.?
- Depending on your income, you may be excluded from paying U.S. taxes on that amount. For example, those making less than $95,100 in 2012 abroad were not required to pay taxes on that income. However, only a portion of that amount may qualify for exemption. In addition, if you made more than that amount, you may still have been able to deduct as much as $95,100.
- Housing reimbursements or deductions may be exempt from U.S. taxes.
- Foreign tax credits can be claimed if you’re paying income taxes in another country. Itemized deductions are also available, depending on your unique situation.
- Treaties with various foreign countries may also enable you to save on your taxes.
What if I’m a foreigner living in the U.S.?
If you are currently living in the U.S., you will be responsible for paying taxes to your home country as well as the U.S. Many of the same rules apply, but they are applied in reverse. It’s always a good idea to speak with a tax professional who can make the process easier.