What to Know Before You Expand Across Borders

In Global Banking and Finance Review, we provide insight into important tax considerations for companies expanding across borders.

On this week’s episode Dave discusses the incentives of companies to onshore their supply chains back to the US with the White House proposing a Fixed Reduction in the Tax Rate.

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A drive to entice multinationals to move overseas manufacturing operations to the U.S. has gained traction with both parties on Capitol Hill as they frame competing plans for new tax incentives to include in possible virus relief legislation.

Congress enacted the CARES Act to provide immediate assistance to individuals, families and organizations affected by the COVID-19 emergency. Among the provisions contained in the CARES Act are provisions authorizing SBA to temporarily guarantee loans under the Paycheck Protection Program (“PPP”).

Transfer pricing compliance applies to all U.S. companies having either a foreign subsidiary or a foreign parent company. IRS transfer pricing rules require that intercompany pricing between a U.S. company and a foreign affiliate must be based on an “arm’s length” price that would be charged in a similar transaction with an unrelated third party.

The increasing concern and impact of COVID-19 on American companies – now coupled with travel restrictions, unsteady global trade discussions and swelling conditions surrounding oil – has created an international business environment unlike any we have ever seen.

As published in Accounting Today: Dave discusses how shareholder savings is the ultimate goal of IC-DISC ownership structure.

Join us for an international tax webinar on Tuesday, January 14th at either 9-10 am ET or 3-4 pm ET.