International/Cross-Border Tax Planning

International tax – whether planning or compliance, inbound or outbound, individual or business -is invariably complex and often daunting. Our diverse, experienced international tax team can help.

When cross-border (i.e. international) tax questions arise, both US domestic tax law and the tax law of each foreign country (or countries)where the taxpayer and/or transaction has connections must be considered. Relevant within the context (and given the inherent possibility for double taxation), the US has a network of bilateral tax treaties with many foreign countries for income and estate/gift tax issues. These treaties often override statutory US federal or local foreign tax law. International taxis not only a matter of understanding US tax laws and applicable tax treaties but often of networking with qualified local tax counsel in the foreign country or countries whose tax system(s) may be involved in a given client situation.

United States domestic tax laws involving multinationals have changed radically since the 2017 Tax Cut and Jobs Act. This is a game changer as to the US tax consequences to, for example, multinational companies with operations and sales in the US and abroad. A sampling of some of the recent federal tax changes that affect or have affected such companies includes:

  • Global Intangible Low-Taxed Income (GILTI)
  • Foreign Derived Intangible Income (FDII)
  • Investment of Earnings in United States Property
  • Base Erosion & Anti-Abuse Tax (BEAT)
  • Transition Tax/Repatriation Tax

Additionally, US state and local tax laws in varying degrees conform (or do not conform) with the foregoing federal laws adding further to the challenges of international tax planning and compliance. And the US federal tax laws are still evolving through ongoing regulation, rule making, and court decisions.

Not only that, but foreign tax laws are undergoing similar radical changes as a result of the increasing globalization of the world economy. In large measure, this is driven by changing digital technology which has shrunk the world and enabled businesses to do global business in countries where they may not even have a physical presence.

Individuals are also exposed more than ever to taxation in more than one country. And not only may individual shave global exposures to income taxes but also to estate and inheritance taxes. Often planning can minimize these global tax exposures for individuals. And where measures are advisable to help with tax compliance catch up, we can often help with those.

As noted above, at Culhane Meadows we do not advise on foreign tax law but rather work with a network of local foreign tax advisers. Our approach is a collaborative one between ourselves as US tax counsel and tax counsel in the non-US countries involved.

Culhane Meadows brings a team of experienced tax law partners working in various areas of tax law to help each client plan for and comply with the international tax laws that may be applicable to the client’s situation. Our partners work to keep current with tax law changes through ongoing study.

We look forward to hearing from you with your tax compliance and planning questions to see if we can be of service to you. Below is some additional information about our international tax practice.

International Tax and Fiscal Association Memberships:

  • International Business Structuring Association – North American Branch.
  • International Fiscal Association – U.S. Chapter.

Recent Int’l Tax Articles by Tax Partners:

  • Key Differences in the Final GILTI Regulations – Law 360, July 17, 2019
  • High-Taxed Global Income Exclusion May Be Too Narrow – Law 360, July 10, 2019
  • How Is My Foreign Interest Classified for U.S. Tax Purposes? Tax Notes, November 11, 2018
  • GILTI Expands on U.S. Anti-Deferral Mechanisms – Law360, August 7, 2018
  • International Tax for the Growing Business – Journal of Taxation, June 4, 2018
  • Tax Cuts and Jobs Act 2017 – Provisions Relevant for International Taxpayers – NJ State Bar’s Tax Section Newsletter, May 15, 2018
  • FBAR Penalty Assessment and Enforcement – CheckPoint, May 16, 2018
  • International Compliance Post-OVDP: A Changing Paradigm  – Tax Notes, May 28, 2018
  • ‘IP Come Home’ How TCJA Incentivizes Asset Repatriation – Law 360, March 6, 2018

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