This week’s tax question:
If I live abroad, and my businesses are all online, do I still have to pay U.S. taxes?
We passed the question on to Michael Bowen of the law firm Akerman Senterfitt, where he’s chair of the state and local taxation practice. He also is a guest lecturer at Harvard University on corporate taxation. Here’s his answer:
This question – although simple – elicits a somewhat complicated answer.
First, it’s important to distinguish between federal as opposed to state and local taxes. In general, if the businesses are incorporated, domiciled, etc., in a foreign country and the owner is not a U.S. citizen, then no federal taxes would be due. If either of these assumptions is incorrect, the answer can quickly change depending on the specific facts. The other complicating factor on the federal side is the presence or absence of a tax treaty existing between the U.S. and the home country of the business. A tax treaty may provide additional protections to a foreign business not otherwise available in the general federal income tax law. (Look on the IRS website for detailed information about such treaties.)
To read the full, original article click on this link: Ask the accountant: Will my international startup owe U.S. taxes? | VentureBeat
Author: Owen Thomas
