There’s more than meets the eye with international tax.
The words “international tax” probably make you think of a worldwide corporation with thousands of employees and offices in far-flung nations. But you don’t have to be a massive conglomerate to be subject to international tax requirements (or eligible for breaks).
Did you know?
- If you’re a U.S. citizen who has income from another country, your foreign-sourced income must be reported on your U.S. tax return because U.S. citizens and residents are taxed on their worldwide income.
- If your company manufactures and sells goods to customers overseas, you may benefit from tax breaks.
- Investing in a foreign company will also subject you to reporting requirements, as will foreign bank accounts – if you’ve established, inherited or have signature control of any such account, you’re required to report it to the IRS if you meet certain thresholds.
- If you are a non-citizen and own real estate in the United States, you may be subject to tax withholding when you sell it and to income tax if you rent it out or have a gain on the sale.
The bottom line… the complications are real for even the smallest of international endeavors.