Would I need to set up banking account in Europe so I do not get over taxed by US government? Does someone have suggestions on tax tips?
2006-08-01 08:23:39 · 2 answers · asked by speedy_1906 1 in Business & Finance ➔ Small Business
It all depends on what kind of work you do and for what kind of customers. Large companies don't mind wiring money internationally, especially if the amounts are not trivial.
As to taxes, as a U.S. resident you are liable to pay taxes on your worldwide income. It's also possible you will have to pay taxes in Europe. The U.S. will probably give you a tax credit for European income taxes, but not for VAT...
There may be legal ways of reducing your consolidated tax bill if you incorporate your business in a low-tax jurisdiction such as Ireland or Luxembourg. You should contact a lawyer specializing in international taxation and have your options explained to you.
2006-08-01 09:01:38 · answer #1 · answered by NC 7 · 1⤊ 1⤋
You'll be oh so pleased to know that if you are a US citizen, the US taxes income WORLDWIDE. Isn't that nice??
Yes, banking where you do biz is always easier than getting into exchange rate issues...
Re tax tips: Good luck. It is a fiasco. Do you know the US taxes the appreciation of the dollar even if the underlying asset doesn't change price in its currency and you never convert back to $US? Oh...its so so much fun.....
2006-08-01 08:30:43 · answer #2 · answered by Anonymous · 0⤊ 0⤋