(Planning for funds that cross a US border)
Investment or funding across a border generally entails a number of specific tax consequences, both to the investor and the recipient.
Investment into the US generally entails consideration of the purpose to which the funds will be put and the related structure to determine the tax treatment of the funding in the US, whether the income on the funding may be tax deductible, and whether withholding taxes may need to be paid on this income or on profits flowing from the funding.
Depending on the circumstances, investing into the US may entail additional specific considerations. See Forming a US Entity?, Investing in US Real Estate?, Opening a US Bank Account? and Applying for a US tax Number?
Investment from the US to another country entails consideration inter alia of the type of income that will be earned from the funding, the type of US structure, and whether income tax as well as withholding tax that may have been paid in the foreign country can be claimed as a credit in the US.
Depending on the circumstances, investing from the US to another country may entail additional specific considerations. See Non-US Entity?, Foreign Trust? and Foreign Accounts?
If you want a tax answer or assistance on investing or funding into or from the US, complete the Contact Us form.
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