This blog is for Australian, Canadain, U.K. and Western European companies and citizens planning to have a business in the U.S. or business income from U.S. customers.
The United States is courting U.K., Western European, Canadian and Australian citizens to move their businesses. The U.S. doesn’t have a VAT (value-added tax). The absence of this tax gives a 25% increase in a company’s purchasing power (assuming a VAT of 20%) of inventory, machinery and employees. Business makes more money due to the additional working capital.
Labor unions are weak in the U.S. Employee rights are limited compared to the U.K., the EU, and Australia.
This blog explains how citizens (and their companies) from a tax treaty country are taxed in the U.S.
I am using the U.S. Model Income Tax Convention (the “U.S. Model Treaty”) for this blog. I will highlight the articles that apply to business. I will make the treaty easy to understand by removing the tax jargon.
If you would like to discuss a U.S.’s tax treaty, then please call me, Brian Dooley, CPA, MBT at (U.S.) 949-939-3414.
Next, I will explain the U.S. tax law on doing business in USA.
Lastly, I will have some questions that I am frequently asked and the answer.