Inbound Immigration: Tax and Business Considerations

Pre-planning for immigration to the U.S. is essential to mitigate the U.S. tax bite and facilitate entry into the country. Foreign companies with permanent establishments (PEs) are subject to U.S. taxation. Activities from a fixed place of business in the country constitute a PE, while a subsidiary might avoid this classification. Businesses relocating employees from their home country need to consider the tax implications of the move to avoid potential double taxation of income and social security taxes on wages paid abroad. Companies acquiring foreign nationals through M&A transactions may want to ensure they are a successor-in-interest to preserve visa status for these employees. 

Under U.S. tax law, determining whether individuals are residents or nonresidents dictates whether they are taxed on worldwide income (resident) or only U.S. source income (nonresident). Green card holders and those who satisfy the substantial presence test are considered residents of the U.S.

There are steps mobile taxpayers, multinational enterprises, and their advisers can take to facilitate a move to the U.S. Treaty benefits, residency planning, transferring or stepping-up the basis in assets, and other measures can reduce a foreigner's tax burden and ease the transition to the U.S.

Listen as our panel of business immigration attorneys discusses tax and business considerations arising from the inbound immigration of mid-to-large corporations to the U.S.

I. Residency concepts for tax and immigration

II. PE risks for foreign companies

III. Global mobility and cross-border employment structures

IV. M&As involving foreign nationals

V. E-1 and E-2 visas for international entrepreneurs

The panel will cover these and other critical issues:

• Strategies for limiting U.S. tax exposure
• Utilizing benefits of U.S. tax treaties with foreign countries
• Implications of sourcing employee benefits and taxation in the U.S. vs. abroad
• Immigration issues in M&A transactions

Learning Objectives 

After completing this course, you will be able to:

• Identify immigration pathways for foreign personnel transferring to the U.S.
• Determine the impact of treaty benefits on inbound immigration
• Ascertain key differences in how residents and nonresidents are taxed in the U.S.
• Decide between structuring alternatives for U.S. subsidiaries with foreign parents

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite:

  Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of international taxation including residency determination, foreign entity classifications, application of treaty benefits, as well as GILTI, Subpart F, and the related Section 250 deductions.

  
  

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).