Tax Planning & Consultancy Services
Whether you are a US expat, an American investing offshore, or a non-US taxpayer investing in the US (or represent someone who qualifies as any of the above) our specialist team of cross-border advisors can offer you tax advice, guidance and planning, or assistance in preparing US expatriate taxes.
Planning ahead is key
The foreign, or expatriate, side of US tax obligation adds additional layers of complexity to cross-border tax compliance. It is important to plan up front in order to reduce potential exposure to paying excess taxes in any jurisdiction.
What may be tax efficient in one jurisdiction may not be, in another. No matter if you are an individual making arrangements, from birth to inheritance, or if you represent a fund, corporation or other business entity; we can help.
US income tax is international
US taxpayers are subject to US income tax on their worldwide income and gains. US taxpayers are also subject to US Estate and Gift Tax on the transfer of their assets during life or at death. Similar taxes are imposed by other countries as well.
However, there are areas where the US tax system and various foreign tax systems are mismatched – in the timing, the amounts and what is actually taxable.
Some tax liabilities may surprise you
Inter-spousal transfers which most married couples believe should be tax-free, may, in fact, be subject to tax not only in the United States but in other countries as well.
Trusts are frequently used as a tool for asset and estate planning. The US and many foreign jurisdictions have complex tax issues associated with the timing and the amount taxed to trustees, settlors and beneficiaries. This varies from jurisdiction to jurisdiction and requires sophisticated planning.
Do you have international business or investment interests?
Business entities are often treated differently from one jurisdiction to another. For example, an entity treated as a partnership in one jurisdiction may be treated as a corporation in another, so the tax could be different as a result of that classification.
Investments that are tax efficient in one jurisdiction may suffer harsh taxes in another. For example, mutual funds, investment bonds and collective investment entities often receive favorable tax treatment in their “home” country but are subject to unfavorable tax treatment in other jurisdictions. Non-US taxpayers investing in, or moving to, the US face similar issues.
Even pensions are affected by US expatriate tax
Pensions, like other investments, are often tax favored in one jurisdiction but unfavorably taxed in another. A US citizen participating in a UK pension will be taxed by the US on employer contributions to the plan, as well as the growth in the plan, even though the UK system allows a tax deferral. This tax mismatch may be reduced or eliminated under the various tax treaties the US has in place.
Plan ahead to avoid overpayment or penalties
There are many variables in international tax, making every situation unique. Careful planning before the event can usually materially reduce a taxpayer’s exposure to double taxation, costly compliance fees and penalties.
Additional US Tax Services: