Tax Update Blog

International Tax Roundup

By Shannon Smith, CPA

Happy New Year! There are so many great topics to cover related to international tax so we are covering some of the highlights:

Brexit – It seemed to happen quietly without much fanfare from across the pond but US companies selling into the EU are being woken. Many are receiving notifications that they need to register for VAT. Under the EU’s VAT Mini One Stop Shop (MOSS) system, they used to be able to register in the UK and remit for all sales in the EU. Not anymore. Learn more from our HLB member firm HLB Sheehan Quinn Brexit and Non-Union MOSS Considerations

Remote workers – During the pandemic the idea of moving somewhere else became possible with remote work. What if your employees decided to go live in Spain for a few months? Many entrepreneurs were able to move internationally while pursuing their goals. What does that mean for the taxation of your business? Learn more about these considerations during our upcoming webinar: Inspired Perspectives: Remote Work Key Considerations

New Administration International Tax Impacts – What could President Biden’s tax plan have in store for international businesses? Some thoughts to consider:

  • For corporations, the reduction of the deduction for GILTI income.
  • For IC-DISCs, the erosion of benefit due to an increase of the capital gains tax rates
  • For non-resident individuals invested in US real estate, the increase in capital gains tax rates upon disposition
  • For non-resident individuals earning income above $400k from a US partnership, the increase in marginal tax rates from 37% to 39.6%.
  • Foreign corporations doing business in the US, the increase in tax from 21% to 28%
  • For US shareholders with foreign subsidiaries, the increase of the high tax exception for GILTI due to the increased corporate tax rate.

The good news is we are unlikely to see immediate changes, per Biden’s focus on the American Rescue Plan.

This year is gearing up to be another exciting one with lots of opportunities for growth. We wish you all the best!

Stay informed!

This is a roundup of tax news and opinion. Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.

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International Tax