Taxes based on income outside USA?

Question

what rules govern on a USA incorporated company's taxes if its entire source of gross revenue and income is outside USA where it's fully taxed and tax rules and forms on salary and wages;if this same company has only one employee (full time or contract base) which is citizen of that other source country OR in other word is a Non Resident Alien (NRA). TIA

Answer 1

The US Corp. would be taxed by the US with deductions for taxes also paid to the other country. The employee if they worked only in the other country would pay the taxes of that country if they have them. Remember that US citizens and US Corporations are always subject to US tax laws. While they must file a return there are circumstances in which the citizen or Corp. may not owe any tax.

Answer 2

i won't have the ability to stay with your question. to comprehend the income tax, commence by way of interpreting IRS e book fifty 4. US voters are taxed on international income. in case you meet the assessments for foreign places earned income, you're able to correctly be waiting to exclude the various income *or* you study IRS e book 514 and could be waiting to take a foreign places tax deduction/credit for taxes paid to a different u . s . a . on income taxed interior the U. S. besides. the U. S. makes use of a fashionable tax gadget--there is not any fastened proportion for taxes. you would be responsible for estimating your tax bill and paying the money due in quarterly.

Answer 3

The corp income is fully taxable in the US. There may be credits for foreign income taxes paid.

Any employees are taxed in their home country. If any of that income is actually earned by them in the US, that portion is taxed in the US as well.