US Subsidiaries: Beware of Surprise Tax
Posted by Nina Wang on March 22, 2022
If you're a foreign investor, it's important to understand the status of U.S. stock to predict your company's tax responsibilities when making deals and avoid any surprises on your tax bills. Here's a quick overview of tax withholding requirements and exceptions to be aware of that may impact your transactions in the U.S.
Funding US Subsidiaries: Equity vs. Debt
Posted by Nina Wang on February 7, 2022
Many start-up companies in the U.S. owned by foreign entities have trouble getting external funding in the early stages of growth. It is typical for these foreign-owned businesses to receive funding support from a parent company that will use a combination of equity and debt. It is important to understand the differences between equity vs. debt since the classification will have a direct tax impact on the tax returns of the U.S. company.
Global Income Tax Treaty Basics
Posted by Eric Lin on November 19, 2021
Doing business globally requires knowledge of the benefits and requirements of income tax treaties between the countries on both sides of a cross-border transaction. Here is some advice to help you realize the maximum benefit from an applicable treaty and meet all related filings.
How to Bring Profits Home Without Any Hassle
Posted by Nina Wang on November 10, 2021
China’s strict foreign exchange control has been a common concern among many foreign investors. Understanding the common ways to repatriate profits from China and the pros and cons of each method will help foreign investors bring profits back to their home countries and avoid unpleasant surprises.
Manufacturing in Mexico: Standalone vs. Shelter Company
Posted by Carlos Calderon on August 12, 2021
Companies interested in manufacturing in Mexico have two main options for their operations. They can operate on a standalone basis or use a shelter service company. We can help you evaluate which structure is best based on your company size, needs, complexity and other important considerations.
Expanding to the US: How to Effectively Manage Your US Subsidiary
Posted by Teresa Gordon on August 5, 2021
Establishing a U.S.-based subsidiary is a challenge unlike any other. Managing it is a close second. Here are some important considerations to help you effectively manage your U.S. operations.
Expanding to the US: Top Legal Tips for a Successful Expansion
Posted by Teresa Gordon on July 29, 2021
The U.S. legal landscape warrants a closer look beyond incorporation, immigration and contract needs. Review these important U.S. legal requirements during the planning stage of your U.S. expansion to avoid surprises or mistakes.
Expanding to the US: Important US Payroll Considerations
Posted by Teresa Gordon on July 22, 2021
There are many aspects involved in planning a successful U.S. expansion. One area that merits a priority focus is U.S. payroll and related human resource matters. Review these important U.S. payroll considerations before expanding to the U.S.
Expanding to the US: Take a Look at Key US Payroll Impacts
Posted by Teresa Gordon on July 15, 2021
Expanding to the U.S. is both exciting and daunting. Review these key U.S. payroll considerations and related human resource matters when preparing for your U.S. expansion.
New GST/HST Filing Requirements for E-Commerce in Canada
Posted by Sue Tuson on July 12, 2021
If you’re a foreign company selling goods or services online in Canada, review these new GST/HST filing requirements for e-commerce deals, expected to become law with a retroactive date of July 1, 2021.
Expanding to the US: Don’t Let Multi-State Taxation Surprise You
Posted by Teresa Gordon and Catherine Praet on July 8, 2021
For many business owners, expanding to the U.S. can be an overwhelming endeavor. If you are currently planning an expansion, it is important to consider how your organization will be affected by multi-state taxation.
Expanding to the US: Why You Need These Partners by Your Side
Posted by Teresa Gordon on July 1, 2021
With legal and tax requirements at every phase of U.S. expansion, it's important to have the right team of U.S. experts guiding you through the process. Learn which partners you need by your side and how they can help you successfully expand to the U.S.
Expanding to the US: Follow These 6 FAQs
Posted by Teresa Gordon on June 24, 2021
There are many items to consider when planning a U.S. expansion, including tax requirements, financial considerations, and other important guidelines. Here are some commonly asked questions and answers to help you get started.
U.S. is the Top Foreign Investment Destination Again!
Posted by Teresa Gordon on June 17, 2021
Global expansion into new markets is the key growth strategy for most companies around the world. Since the start of the pandemic, understanding the factors that influence where and how to invest in a foreign market has never been more critical.
International Impacts of President Biden’s Tax Proposals
Posted by Sue Tuson on June 3, 2021
On May 28, 2021, the U.S. Treasury released its Fiscal Year 2022 explanation of the various proposals included in President Biden’s “Made in America” tax plan, known as the Green Book.
Treasury Green Book Offers Look into Biden’s Tax Proposals
Posted by Sarah Russell on June 3, 2021
Right before the Memorial Day weekend, the U.S. Treasury released its Fiscal Year 2022 explanation of the various proposals included in President Biden’s “Made in America” tax plan.
Multinational Companies to Pay More Under Biden Tax Plan
Posted by Teresa Gordon on May 6, 2021
Review key details of the Made in America Tax Plan and learn how these proposed changes will impact U.S. multinational companies and U.S. subsidiaries of foreign corporations.
The New Mexican Regulation on Outsourcing has Arrived!
Posted by Carlos Calderon on April 26, 2021
After several months of analysis and negotiations, the Mexican government published a decree on April 23, 2021 impacting labor outsourcing activities. Learn about the main reform provisions and what this means for your business.
Remote or Office-Centric Workforce? Financial Considerations for Your U.S. Subsidiary
Posted by Teresa Gordon on April 20, 2021
When establishing a U.S. subsidiary, it's important to review the pros, cons, and costs of operating a remote or office-centric workforce.
Doing Business in Mexico: What to Expect this Year
Posted by Carlos Calderon on February 23, 2021
As the global pandemic presses on, Mexican businesses have been forced to adapt to the virtual culture and work from home environment. Here is a round-up of the most relevant impacts to doing business in Mexico for 2021.
Work From Home Rules in Mexico
Posted by Carlos Calderon on January 28, 2021
As more work from home positions emerge due to the pandemic, the Mexican government has enacted a labor reform to establish new fair work guidelines. The provisions apply to workers who carry out their activities 40% or more of the time at home.
Anti-Corruption Legislation and New FinCEN Reporting Requirements
Posted by Teresa Gordon on January 25, 2021
The Corporate Transparency Act (CTA) is an anti-corruption legislation that was passed on January 1, 2021 as part of the larger National Defense Authorization Act (NDAA). Learn about the CTA's new requirements for certain entities to report beneficial ownership interests to the U.S. government.
Are Foreign-Owned or Controlled Companies Eligible for a PPP 2.0 Loan?
Posted by Teresa Gordon on January 18, 2021
Foreign-owned or controlled businesses in the U.S. may be wondering if they will be able to receive an initial or second PPP loan this time around. Learn more about eligibility requirements for foreign-owned businesses.
2021 Proposed Mexico Tax Reform Package
Posted by Carlos Calderon on October 27, 2020
Here are some of the proposed amendments of the 2021 Mexico tax reform package. If approved by October 31, these new laws will go into effect on January 1.
Expatriate Employees and Global Taxation
Posted by Eric Lin on September 9, 2020
As Chinese companies expand their businesses globally, expatriate employees’ individual income taxes become more critical for the employees themselves, and Chinese-owned foreign subsidiaries. Here are some important considerations under the Chinese IIT Rules.
Relief with International Tax Deductions
Posted by Sue Tuson on August 19, 2020
The Tax Cuts and Jobs Act (TCJA) of 2017 provided a benefit for corporations that export goods or services by creating a foreign-derived intangible income deduction (FDII), also referred to as a section 250 deduction.
9 FAQs About the USMCA
Posted by Carlos Calderon on August 3, 2020
It has already been a month since one of the most competitive regions in the world, which together generated more than 25% of the world’s GDP in 2019, finally entered into the United States-Mexico-Canada Agreement (USMCA).
10 Recommendations for Mexican Subsidiaries during COVID-19
Posted by Carlos Calderon on May 28, 2020
Companies with Mexican subsidiaries may be wondering how best to proceed in light of COVID-19.
IRS Revises Cross-Border Activity During COVID-19
Posted by Teresa Gordon on May 5, 2020
The IRS has been busy, and this time, that is a good thing. Within the past couple weeks, they have released two Revenue Procedures (Rev. Proc.) and one frequently asked questions (FAQ) that explains how treatment of cross-border activities will change in light of the COVID-19 disruptions.
Mexico Manufacturing During the COVID-19 Crisis
Posted by Carlos Calderon on April 13, 2020
Like most of the countries in the world, Mexico has been and will be significantly impacted by the Coronavirus outbreak. With the shutdown of non-essential activities, the peso has devaluated, the index of risk has risen and unemployment rates have soared.
CARES Act Special Rules for Use of Retirement Funds
Posted by Dave Van Damme on March 30, 2020
The CARES Act includes a number of provisions to allow access to retirement funds in employer-sponsored retirement plans.
International Investment Filing Date: BE-10
Posted by Sue Tuson on March 27, 2020
Every five years, the U.S. Department of Commerce Bureau of Economic Analysis (BEA) requires that people with certain investments abroad file a survey. The mandatory survey is based on investments held at the end of the 2019 fiscal year.
To “C” or not to “C”? That is the Question
Posted by Jim Biehl on March 17, 2020
Whether it is nobler in the mind to suffer the higher effective tax rates as a flow-through entity, while maintaining optimum future planning flexibility, or elect to convert your flow-through entity to be taxed as a C corporation, and by doing so realize the immediate and delicious 21% “permanent” C corporation tax rate?
Why Choose Michigan for Your Foreign Subsidiary?
Posted by Sue Tuson on March 10, 2020
When making the strategic decision to expand a business into the U.S. it’s important to carefully plan for the various challenges inherent in the process. Strategic issues such as supply chain development, vendor management, and production optimization.
Important Filing Requirement for Foreign-Owned U.S. Companies
Posted by Nina Wang on February 19, 2020
The last thing any business wants to receive is an audit notice from the Internal Revenue Service (IRS). Your first reaction will naturally be panic or fear. So, what protective measures can a business or business owner put in place?
Early Progress on the International Front
Posted by Rob Dutkiewicz on February 4, 2020
The new decade got off with a big bang, with significant developments in trade policy. Though their substance and effect seem to be a point of debate, I believe that all three of these recent developments will be positive for the U.S. economy, in some way.
US Senate Approves the USMCA
Posted by Carlos Calderon on January 20, 2020
The United States, Mexico, Canada trade deal (aka. NAFTA 2.0), has finally been approved by the US Senate after 29 months of extensive negotiations. Republicans and Democrats came together to show support with 89 votes in favor of the new agreement.
Global Expansion: Investing in a Subsidiary
Posted by Sue Tuson on January 17, 2020
Businesses are consistently evaluating how to stay competitive. Global expansion may be the answer for a business to reach new markets, meet current customer needs, reduce costs, or find talent.
Leadership From Around the Globe
Posted by Rob Dutkiewicz on December 2, 2019
A few weeks ago I traveled to Rome, along with my fellow shareholder Sue Tuson, to attend the PrimeGlobal World Conference. PrimeGlobal is one of the five largest associations of independent accounting firms in the world.
Considerations When Expanding Outside the U.S.
Posted by Sue Tuson on November 12, 2019
Establishing a subsidiary outside the U.S. presents tremendous opportunities and benefits. Succeeding in global markets requires significant time, energy and resources on the part of business owners and decision-makers.