We commonly speak with investors from Asia and elsewhere who are interested in investing the USA. Most commonly the investment is real estate, but we work with more sophisticated investors who have an appetite for US businesses as well.
Naturally foreign (also called Non Resident Alien or NRA) investors, want to know how investment into American business should best be structured.
If you're an NRA investing in US Real Estate, please read this - http://www.mooresrowland.tax/2017/05/are-you-non-american-nra-and-own-us.html
Ownership Structures for Foreign Investors
An NRA can acquire U.S. assets using several alternative ownership structures. The NRA's goals and priorities dictate the type of structure that is used. Each alternative has its own advantages and disadvantages – there is no perfect structure. Direct investment (assets owned by the NRA) is simple. Assets are held in the NRA's own name and is subject to only one level of tax on the disposition. If the asset is he…
This revenue procedure provides a summary filing procedure for filing Form 5471 with respect to dormant foreign corporations described in section 3 below. Persons complying with this revenue procedure satisfy their Form 5471 filing obligations under sections 6038(a)(1), 6038(a)( 4), and 6046(a)(3) with respect to dormant foreign corporations and will not be subject to penalties related to the failure to timely file a complete Form 5471 and to timely furnish information requested thereon.
SEC. 2. BACKGROUND
.01 Section 6038(a)(l) imposes information reporting requirements on any United States person who controls a foreign corporation. Pursuant to section 6038(a)(4), the information reporting requirements prescribed in section 6038 (a)( 1) also are imposed on any United States person who is treated as a United States shareholder of any foreign corporation that is treated as a controlled foreign corporation for any purpose under subpart F.
Given the growth of the sports industry not only within North America, but also
internationally, it is increasingly critical that foreign athletes and entertainers
become educated regarding the United States’ taxation of their income.
1. The first step in determining the U.S. taxation of a so-called “foreign” athlete or
entertainer (namely an athlete that is not a U.S. citizen) is residency for tax purposes
— specifically, whether the athlete or entertainer is a “resident alien” or a
(Picture of the attendees of a Moores Rowland Asia Pacific conference in October 2019)
A Foundation is a relatively new concept to common law jurisdictions. What follows is a quick review of Trusts vs Foundations vs Wills.
Note that this is a somewhat complex subject and professional advice is always suggested. This is only an introduction to a deep and nuanced space.
Until 1969, the term private foundation was not defined in the United States Internal Revenue Code. Since then, every U.S. charity that qualifies under Section 501(c)(3) of the Internal Revenue Service Code as tax-exempt is a "private foundation" unless it demonstrates to the IRS that it falls into another category such as public charity. Unlike nonprofit corporations classified as a public charity, private foundations in the United States are generally subject to a 1% or 2% excise tax or endowment tax on any net investment income.
The US-based Foundation Center uses a more specific definition of private f…
The BVI government has introduced a new Act with Economic Substance Requirements for certain legal entities
effectively applicable from 1 January 2019, with a six-month transitional period for existing legal entities.
The legislation is introduced based on the recommendations of the BEPS project developed by the OECD to combat
tax evasion by multinationals which are shifting profits from high tax jurisdictions to entities in low/zero tax jurisdictions
but which entities have no adequate economic substance locally.
Similar legislation is introduced in other low/zero
tax jurisdictions including Cayman Islands, Mauritius, Bahama…