International taxes can be tricky.

If it’s not already on your mind, international taxes should be. Whether you work, earn, or live abroad, international taxation rules apply to you.

But, you’re not alone in trying to understand them. That’s why we’re here. We understand how confusing international tax planning is.

The Rules Change

We believe that every company or person doing business abroad should hire a financial planner or manager. This is because the rules and obligations of your taxes vary depending on where you are earning vs. where your primary residence is.

You will also need to read up on the rules of the country that you are earning money in. Oftentimes, it is different compared to the US. So, there may be other dates, paperwork, and claims you need to submit to avoid penalizations.

Another thing to look out for is how the foreign country taxes its residents. Keep in mind that many places tax non-residents differently and it’s your duty to know-how.

Don’t Forget Your US Responsibility

You can’t just claim taxes in the county you are doing business in. Even if you live, work, or earn money abroad, you still have obligations to your home country. This is still true even if you are living abroad full time. You are still liable to or report (and possibly pay) taxes in your home country.

This is because the US tax system is set up in a way that all of its citizens are taxed on the income they’ve earned, regardless of where in the world it was.

To make sure your return is done properly, we always recommend speaking with a professional. More specifically, someone who has experience in international tax laws can be a confusing process.

Plus, experienced advisors will be able to suggest certain benefits (such as the Foreign Earned Income Exclusion and Foreign Tax Credit) that you may be eligible for.

Tax Treaties

You might want to consider looking into treaties between the US and the country you are doing business in. That’s because the US has treaties with certain countries for taxes. This means you could be eligible for benefit programs and can avoid double taxation.

Documentation is Key

If you’re operating your business globally, you will need to document everything. This means keeping track of all of your accounts, creating copies of all transactions, and having an accountant regularly look over these filings.

In addition to keeping track of your daily business deals, you should keep documentation on any and all foreign income, or taxes that you’ve already paid. These documents will be key in preventing, and fighting an audit if you undergo one. Plus, it can act as proof for any foreign tax credits or dedications you might be eligible for.

The Professionals Know Best

When working abroad, you cannot shy away from the professionals. Speaking with an experienced person, like us at A.P Accounting and Tax Services, can give you greater insight into what you need to do.

Additionally, working with someone who has experience in international business can help clarify any questions you have regarding your claims.

Professionals will also be able to document, track, and fight on your behalf in the event of an audit. In turn, working with you to streamline the process, regardless of where you are.

Ultimately, filing your taxes can be stressful. From gathering all the documents to figuring out due dates, and benefit programs; it’s not a task you should do alone. For some helpful advice and a free consultation, call us today at 407-328-5001.

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