Sol Schwartz & Associates knows that globalization has become an increasingly important part of today’s business. For many in this region, international business is no longer a choice, but a necessity in order to stay competitive. However, with different rules across borders, as well as strict regulations in place by the U.S., a whole new level of complexity is added to a company’s reporting. The international business team at Sol Schwartz & Associates can help you overcome any obstacles and develop the right tax strategy so you can take advantage of the opportunities in the international business arena.
Sol Schwartz & Associates is a member of CPAmerica, Inc., one of the largest associations of CPA firms in the world. Through our affiliation, we have instant access to the expertise and resources of more than 4,000 CPAs across the United States. CPAmerica has a business alliance with Crowe Global, giving us access to more than 200 independent accounting and advisory services firms in 130 countries. Through our membership in CPAmerica, we offer our clients unique access to national and international markets through an association of independent accounting firms that maintain the highest practice standards.
The Sol Schwartz & Associates International Team specializes in:
Foreign-Owned Businesses Operating in the U.S.
Foreign-owned businesses operating in the U.S. have certain compliance requirements including required reporting of transactions to the IRS and the Department of Commerce. We prepare these and all other necessary tax reporting forms as required. Transfer pricing is one of the most important issues to businesses interacting globally, so our team focuses on advising our clients on current IRS pricing issues. We also review the options of operating as a subsidiary or as a branch of a foreign-owned business, including all short and long-term business tax issues.
U.S.-Owned Businesses Operating Abroad
An important issue for businesses headquartered in the U.S. is foreign tax credit utilization and deferral of taxes on income. We review the need to incorporate when expanding into foreign markets with our clients. In many cases, we introduce our clients to both our associates in CPAmerica International and legal counsel outside the U.S. Advising on Controlled Foreign Corporation (CFC) status is an ongoing activity with clients expanding overseas. There are many changing tax issues relating to CFCs, ranging from deferral of income to reporting requirements.
As businesses begin operating in a global environment, questions arise regarding the need to withhold U.S. taxes on payments. We work closely with our clients, advising them on what types of payments require withholding of U.S. income taxes.
The U.S. has many export incentives ranging from borrowing export funds to the tax incentives of forming an IC-DISC. Our team advises and assists clients to maximize their profits by reviewing options and alternatives in debt structures that enhance exporters’ businesses. We also analyze exporters’ profits in order to determine the advantages of forming an IC-DISC outside the U.S.
U.S. Incentives Abroad
Since the U.S. taxes resident individuals on their worldwide income and estates, it is important to properly plan foreign investments to prevent a negative tax impact.
Our services for nonresidents include tax planning and return preparation, as well as due diligence with respect to their U.S. assets and investments. Our team advises our clients on investments, income tax and U.S. estate taxes.
Prior to immigrating to the U.S., there are many tax issues that must be addressed. Immigrants with substantial income or assets outside the U.S. need to consider tax planning in order to reduce possible double taxation. We work closely with U.S. immigration attorneys and offshore counsel to properly advise our clients moving to the U.S.
U.S. Citizens and Residents Working Abroad
American companies with employees working abroad must consider how to structure payroll tax policies to achieve maximum benefit for the company and its expatriate employees. Our team can suggest the most advantageous way to compensate expatriate employees and assist expatriates with ways to maximize foreign earned income exclusion.
Transfer Pricing Studies – Analysis
With the increased emphasis on transfer pricing regulations worldwide, companies face the risk of an audit by IRS and tax authorities throughout the world. Our international tax professionals can review your inter-company transactions to ensure compliance with transfer pricing regulations in the U.S. and abroad.
We invite you to contact us directly, or continue browsing our website to learn more about how we can help you. Can can also reach out directly to CPAs Arturo Machado or Samanta Guerra, who lead our international tax team and work with clients from around the world.