For businesses and individuals from around the world, the U.S. offers abundant opportunity. To conduct business in the U.S., companies setting up or expanding existing operations in the U.S. and individuals with U.S. investments, are required to navigate U.S. corporate and personal tax systems, trade laws and other regulations.
Weaver’s international tax team offers a range of accounting services and support to businesses and individuals to help maximize the benefits of overseas operations and investments.
Our foreign investment in the U.S. services include:
Inbound Structure Planning
Weaver assists foreign-owned businesses looking to organize or expand existing operations in the U.S. to evaluate an optimal tax structure that conforms to business needs. Weaver supports a variety of tax aspects for foreign-owned businesses, including entity selection, investment structuring advice, financing and refinancing considerations, permanent establishment analysis, tax treaty analysis and repatriation planning and reporting.
Tax Compliance for Foreign-Owned U.S Businesses and U.S. Activities of Foreign Corporations
Foreign businesses and individuals looking to conduct business in the United States may be subject to complex U.S. income tax reporting requirements, depending on the type of income generated in the U.S. and the entity type selection of the U.S. business. Weaver assists these businesses and individuals manage the complexity. This includes the administrative burden of potentially having to file a U.S. tax return and mitigation of exposure to penalties from federal and state and local tax authorities. Our State and Local Tax, Advisory and Assurance Services teams offer seamless services to foreign-owned businesses with U.S. operations, making Weaver a one stop compliance hub for all your compliance needs.
The IRS has increased its focus on foreign-owned businesses with respect to many cross border payments to identify tax compliance errors, tax underpayments and transfer pricing irregularities. Weaver helps clients resolve an identified controversy or reduce future risk through IRS controversy representation and resolution, penalty prevention and abatements and pre-filing review of tax returns to evaluate potential tax risk areas.
Transfer pricing analysis can help prevent multinational businesses from setting prices that result in higher global taxes and ensure that profits from transactions between a U.S. business and its foreign subsidiary/parent are fairly priced (i.e., arm’s length) and taxed reflective of the relative risks and functions of each entity. These transactions can include the purchase or sale of tangible goods, services, and the licensing of technology or intangible assets such as know-how, trademarks, copyrights, and patents. Many countries now have transfer pricing regulations. Weaver can assist businesses with selecting intercompany pricing that meets commercial needs and conforms to both U.S. and foreign transfer pricing requirements by leveraging our foreign affiliate network.
Weaver actively participates in global affiliate networks that provide our industry leaders with access to a full portfolio of services and resources for global companies and enable local service delivery where our clients do business. By leveraging relationships with like-minded firms around the world, Weaver is able to deliver best-in-class solutions to our clients’ international business needs.
Cash Repatriation Planning
Foreign-owned U.S. companies that generate excess cash from U.S. operations have the option of either redeploying their capital or repatriating funds to the foreign owner. Weaver assists clients with cash management strategies and planning opportunities to deploy and repatriate cash efficiently through the use of dividends, royalty payments, management fees, and loans. We account and seek to minimize any taxes (example, withholding or income taxes) applicable in both the U.S. or in foreign countries.
Withholding Tax Reporting and Planning
U.S. information reporting and withholding requirements significantly impact multinational companies involved in business and investing activities in the U.S. Weaver offers consulting and compliance services to help clients achieve efficiencies, including:
FDAP Withholding (Chapter 3 Withholding): includes Interest, Dividends, Rents, Royalties, and other periodic payments. We can analyze the relevant tax treaty to reduce U.S. tax liabilities or claim a refund of taxes overpaid or over-withheld.
Foreign Account Tax Compliance Act (FATCA) (Chapter 4 Withholding). Generally requires that foreign financial Institutions and certain other non-financial foreign entities report on the foreign assets held by their U.S. account holders or be subject to withholding on withholdable payments.
Foreign Investment in Real Property Tax Act (FIRPTA) Gains and losses realized by a nonresident alien or a foreign corporation from the “disposition” of a United States real property interest is taken into account as though the foreign person were engaged in a U.S. trade or business and the gain or loss was effectively connected with a U.S. trade or business and potentially subject to U.S. tax and reporting.
Our team works across a myriad of industries with foreign investments in the U.S., including:
In March, the U.S. Treasury Department proposed four changes to “modernize” the reporting of digital assets. The proposals,…