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Showing posts from November, 2019

Permanent Residence in Switzerland

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Switzerland needs no special introduction. It is a Country with one of the highest living standards in the World and one of the highest GDP per Capita. It is organized as Confederation of Cantons in the heart of the European Continent with diverse landscapes of Cities, Mountains, Forests and Lakes. A pleasant Climate, a healthy mix of living and recreational areas are coupled with Global business reach and social and cultural opportunities.
Switzerland is not a Member of European Union, but Swiss Residents enjoy EU benefits of Free Schengen Area Travel, among others. Swiss Companies enjoy EU benefits of avoiding Double Taxation while enjoying freedom of being lightly taxed and lightly regulated compared to their EU counterparts. Switzerland can be proud of its responsible management of public finance and stands out with its amazingly low public debt. This self-responsibility is one of the reasons for favorable taxation rates of its citizens and businesses.
Official languages: German,…

How To Handle Dual Residents: IRS Tiebreakers

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What happens when a foreign individual who is neither a U.S. citizen nor a green card holder on U.S. income tax laws?
We need to determine the person's residence for income tax purposes. But what is to be done when the individual is resident in multiple jurisdictions?  For this purpose, U.S. domestic law, foreign law, and residency rules under any applicable income tax treaty must be looked at.
The Practice Unit "Determining an Individual's Residency for Treaty Purposes" was published on July 3, 2018. It provides guidance on how to determine tax residency under an applicable U.S. income tax treaty.

https://www.irs.gov/pub/irs-utl/tre_p_016_02_01_06.pdf

Treaties generally have a provision for determining residency in the case of dual residency in both the U.S. and the treaty partner country. These rules are often referred to as the Tie-Breaker Rules.
The Practice Unit summarizes the steps for applying the Tie-Breaker Rules as follows: 1.Determine whether the individual prop…

Transfer Pricing in the USA

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The IRS has made it clear that Transfer Pricing is a priority -  http://www.mooresrowland.tax/2019/05/captive-services-provider-campaign.html
What do we mean by it?




Why do Governments care?




Therefore it is a hot topic globally including jurisdictions in which we have many clients such as -  Singapore - http://www.mooresrowland.tax/2019/11/tax-planning-in-singapore.html Indonesia - http://www.mooresrowland.tax/2019/10/transfer-pricing-in-indonesia.html Australia - http://www.mooresrowland.tax/2019/11/australia-tax-residence-and-fiscal.html Hong Kong - http://www.mooresrowland.tax/2019/07/corporate-tax-guide-hong-kong-special.html


To better explain the global push for Transfer Pricing rules and compliance, we need to refer to recent OECD initiatives.  It is encapsulated in BEPS which stands for Base Erosion and Profit Shifting which includes a 15 point action plan -


Transfer Pricing falls under Action 13 -





But let's return to the USA.  Section 482 of the Internal Revenue Code 1986 provides the…