(Planning for payments that cross a US border)
Because US rules often tax the income earned by different entities at different rates (see Forming a US Entity?), and often tax different types of income at different rates, planning for income and distributions that cross a US border is essential.
For example, US recipients of cross-border dividends are taxed at beneficial rates under certain circumstances; while US recipients of cross-border trust distributions are often taxed at heavy rates (see Foreign Trust?).
On the other hand, non-US recipients of income from the US typically face a variety of US withholding tax rates depending on the type of income – especially if they reside in a country with which the US has a tax treaty (see Tax Treaty Question?).
If the income is paid by a party who is related to the recipient, planning is then aimed at global tax efficiency, taking account of the overall tax inclusion and tax deduction rates of both parties.