Local, state and federal taxes are notoriously difficult and confusing. But they pale in comparison to international taxes. Businesses that operate in the international arena have amazing potential for growth, but with that comes increased headaches at tax time. That’s because these businesses are now operating in new tax jurisdictions, with foreign rules, regulations, and requirements. While you may not be familiar with all of these new rules, regulations, and requirements, you still need to follow them to the letter, or else face stiff fines and penalties. Below is a helpful guide for a particularly difficult segment of business taxes, international tax filing, with the intent of making it a bit easier to understand.
Outbound International Taxes
As we said, American companies that expand into the international realm deal with a variety of new rules and regulations. Here are some helpful questions that your company should ask itself regarding international taxes:
- What are these new rules?
- How do these new rules apply to my particular company?
- Will I end up double paying (paying the same taxes twice)?
- Do I have the experience and expertise to properly deal with international taxes?
All of these questions need to be considered when your business expands internationally. Failure to consider them could greatly hurt your company’s bottom line.
Inbound International Taxes
Foreign companies that expand into the American market face a difficult tax situation as well. This is referred to as “inbound” international taxes. Some of the issues related to inbound international taxation include converting to U.S. generally accepted accounting principles (GAAP) and staying tax compliant on the federal, state, and local levels. There are many more tax issues that foreign companies face when doing business in the U.S. American tax laws are labyrinthine enough for U.S. companies; this situation is compounded for foreign companies.
Help Is Available
We have established the bad news: that there are many things that your company needs to account for, whether it is a foreign company doing business in the U.S. or an American company doing business on foreign soil. Now for the good news: there is help available. Yes, it’s OK; you can breathe a sigh of relief now. We highly suggest that you get in touch with a Dublin tax company. Tax companies help all sorts of businesses with all sorts of tax issues. This includes foreign companies that operate here in America, and American companies that are trying to deal with international rules and regulations.
What you need to do is find a tax company that has been dealing with international tax issues for years, as international taxes require global experience. What’s also needed is a company that is part of an international alliance, who can provide you with the tax expertise you need, no matter what country you are operating in. An experienced tax firm can help your company with both inbound and outbound tax issues, insuring that you are compliant, and that you save money in the process. This will make international tax filing so much easier on your company.