The globalization of business has created many opportunities for companies to grow and expand internationally. Doing business in other countries is no longer reserved for giant, multinational public companies; it is now a reality for many small- to medium-sized businesses as well. Increased technological capabilities have made it easier to sell products in other countries. Remote work capabilities have enabled companies to easily employ personnel in other countries, and in turn employ foreign persons here in the U.S. While these can be excellent opportunities for an expanding business, the economic presence created by them will produce many complex international tax issues.
Successful navigation of intricate international tax laws is essential to ensuring your company does not miss a foreign filing requirement, as the penalties and interest can be severe. It is also important to understand all forms related to payroll taxes to ensure taxes are properly withheld from foreign employees.
During this blog series, we will discuss common international tax issues and filing requirements that arise with doing business in other countries. We will discuss foreign reporting requirements for corporations, as well as forms required when companies have foreign employees. Stay tuned.