In the 2017 Statistics of Income Bulletin, the IRS reported that foreign recipients of U.S. source income from treaty countries had an average withholding rate of 13.9% compared to 25.6% for payments made to residents of non-treaty countries. Absent certain exceptions and/or exemptions, a foreign person, including a foreign entity, is generally subject to tax at a flat 30% rate on U.S.» Read More
Several tax bills passed by Congress late in 2015 changed the deadlines for filing federal income tax returns for partnerships and most limited liability companies, which are treated as partnerships for tax purposes. Other required filings might be affected as well.
The new rules generally take effect for tax years beginning after December 31, 2015, so that, for calendar year filers, the new deadline applies to 2016 tax returns, which are due in early 2017.» Read More
In a decision that again pits the United States against the European Union in that ongoing battle over which entity can primarily tax international business, Margrethe Vestager, the European Union commissioner for competition, ordered Ireland on Tuesday to claw back billions from Apple over illegal tax breaks. At issue is up to 13 billion Euros (US$14.5 billion) in back taxes, which the European Commission claims are due for a 10-year period. » Read More
The New Jersey Division of Taxation has issued a bulletin providing general guidelines for determining whether the activities of a corporation create nexus with New Jersey for the purposes of imposing the corporation business tax. Click here to read the bulletin.
While India is yet to sign a final agreement with the United States for the Foreign Accounts Tax Compliance Act (FATCA), close to 1,000 Indian financial institutions and their overseas units are believed to have already registered with the United States tax authorities under this new regime. FATCA compliance had its genesis when the US Treasury initially announced in 2012 that it was engaged with more than 50 countries and jurisdictions around the world to improve international tax compliance and implement FATCA.» Read More