It's a rare occasion these days to find a business that only deals with local transactions. Whether you are providing products and services to foreign clients and customers, or making foreign investments or procuring business goods or services from a foreign company, there is a good chance that some of your business transactions cross borders.
For everything you do in business, there are tax implications. No matter how small an international transaction may be, there will be international tax implications to consider. International taxes can be complex matters, whether you deal with them on a regular basis or not, and mishandling them-regardless of your intentions-could lead to legal trouble. This is why it's always a good idea to work with an international tax consultant who can help you understand international taxes and ensure you're always operating and filing correctly.
Accepting Foreign Currency
If you are marketing or making your products or services available to a foreign market, there is a good chance that you are bringing in foreign currency. Of course, it is possible to have foreign customers pay in American currency, but because this reduces sales, many business do accept some foreign currencies.
Talk to your international tax consultant about what the implications will be for your business. You will have to pay taxes on any foreign income earned, and may be subjected not only to American tax laws regarding foreign income, but also to the tax laws of the country where the transaction originated. You may want to cater your business toward countries with more agreeable tax policies. Your international tax consultant will help you to determine what is best for your business.
Spending in Foreign Countries
Sometimes your business might spend money in other countries. This might be for investment purposes, or to procure supplies, services or equipment. In any case, you will have to pay regional sales taxes on any transactions, and will be subject to that country's investment taxes. Don't forget though, that there will likely also be American tax implications as well. If you're unsure, your best bet is to disclose any foreign business spending or investment to your international tax consultant. They will know what needs to be claimed and how to go about claiming.
The Importance of an International Tax Consultant
However you involve your business in foreign transactions, whether by investment or by offering your services to an international market, the importance of working with an international tax consultant cannot be overstated. Many accountants will have some knowledge of international taxes, but that knowledge may be limited if they don't specialize in international taxes specifically. An international tax consultant will know the intricacies of the tax laws and regulations in the countries you are conducting business in and can help you to plan accordingly.
Take advantage of the expertise of an international tax consultant so you can keep growing your business with peace of mind, and the freedom to focus on the daily operations of your company.
Esquire Group , a boutique international tax consultancy firm specializing in tax consulting, tax planning and compliance and helping corporate and individual taxpayers with Offshore Voluntary Disclosure Program, asset protection, and US expat taxes. To learn more about us, visit EsquireGroup.Com/About .