Spring 2012 issue of Horizons

Manufacturing & Distribution

Considerations During International Expansion of Your Business By Kirk Wonio, CPA

While there are many types of treaties the U.S. may have with foreign jurisdictions, including income tax, estate and gift tax, social security totalization agreements and shipping and aviation treaties, a particular focus should be on income tax treaties. Income tax treaties facilitate international trade and investment by minimizing double taxation of cross- border transactions and allow for limited activities with income tax protections. The U.S. has an extensive network of income tax treaties with many foreign jurisdictions. Under these treaties, a U.S. resident company that receives income from a treaty country and that is subject to taxes

As the economy has become more global, many small to mid-size firms have begun exploring the international markets to expand their business. However, with this increased footprint comes new complexities in dealing with foreign jurisdictions’ laws and regulations. RubinBrown offers a few tax issues to consider as you expand your business outside the United States.

Extensive U.S. Income Tax Treaty Network As you expand outside the U.S., you should consider the impact of the U.S. treaty network.

Raise Your Expectations

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