Cross Border Taxation: India and USA
When someone hears the word “tax” the reaction is not very valiant because people don’t understand the taxes and they also don’t understand that if you play your cards right, a lot of it can be saved LEGITIMATELY and without any accounting chicanery! Optimising the taxes to aligning them with business objectives is crucial for any enterprise irrespective of its size.
Cross border selling is one of the fastest-growing niches in e-commerce. It is growing twice as fast as regular e-commerce and is expected to be worth USD 1 trillion in Gross Merchandising Value by 2022. But managing taxes on cross border taxation is both arcane and complex. That’s why more than half of the sellers in the US are actively looking for experts to handle their customs and taxes.
Need for Professionals
We at USAIndiaCFO make sure that the complexity of cross-border taxation doesn’t become a roadblock for our clients in expanding their business beyond the political borders. Why worry about:
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- Calculating and withholding taxes,
- Filing of returns,
- Filing of information reports,
- Tackling double taxation,
- Ensuring that compliances are sorted,
- Keeping up with the filing dates
Running from pillar to poles and losing on already scarce business bandwidth makes no sense when you can simply partner with us and pass on the compliance headache to us.
Who is Subject to Cross Border Taxes
If your US registered organisation is doing business or investment outside the USA then it is called an outbound transaction which is subject to cross border taxes. Conversely, if foreign nationals transact in the US, then it is called an inbound transaction which is again subject to cross border taxes.
Laws Governing Cross Border Taxation
Though Internal Revenue Services has laid down explicit rules pertaining to cross border taxes, if there is a treaty between the USA and the home country of a foreign national/country from where a US citizen operates his/her business from, that treaty will eclipse those default rules. From instance, the India-U.S. Income Tax Treaty.
Cross Border Tax Rates Between US-India
Well, it is an intricate question as there are various variables involved like the type of business entity, nature of income, amount of income, new developments local laws and tax treaties, etc makes it a bit difficult to articulate tax rates here. But you can drop us an email at hello@usaindiacfo.com containing the details of your business and our team will reach out to you with tailored solutions within 2 hours.
USAIndiaCFO Advantage
We have more than 10+ years of experience in assisting Indian entrepreneurs in setting up/expanding their business in/to THE USA. We meticulously analyse your business from top to bottom and come up with tailored solutions for holistic tax planning and accurate financial prognosis making your business more profitable and predictable. We avail our clients an umbrella solution for their business needs including but not limited to ITIN, transfer pricing, US GAAP and assurance services, federal and state taxes, accounting and patent and trademark registrations, etc.
To know how we can implement our innovative tax and financial solutions in your business, give us a ring at 7727887799 (also available on WhatsApp) or drop us an email containing your business requirements at hello@usaindiacfo.com and our team will reach out to you within 2 hours.
We can help you with Cross Border Taxation, along with providing a range of other services to take full accountability as the virtual CFO to your business.
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