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Username: |
Dotan |
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location: |
Israel |
| Post
Date: |
07.22.2010 |
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Topic: Is there a tax on
a US Company owned by
non US resident?
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| Me
and my father have a
manufacturing business
in Israel. We are
negotiating with a US
company to sign an
exclusive distribution
agreement and wanted to
know if there will be
any US tax on profits
our US company will
have. I know that there
is a tax treaty between
the US and Israel, does
it help here? |
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Username: |
Tax Usa
|
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location: |
USA |
|
Post
Date:
|
07.22.2010 |
|
Dotan,
as an
Israeli
resident
you are
taxed on
your
worldwide
income,
including
income
generated
in the
US. Your
US
company
will be
subject
to US
tax on
any
income /
profits
generated
in the
U.S.
The
tax
treaty
between
the US
and
Israel
is
designed
to avoid
"Double
Taxation",
meaning
Israeli
resident
with US
income
will not
pay to
both
counties
tax on
the US
income,
but will
pay US
tax on
it, and
if the
Israeli
tax is
higher,
there
will be
additional
tax
payable
to the
Israeli
tax
authorities. |
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|
|
To begin
the
incorporation
process
simply
click on
this
link
which
will
redirect
you to
our
Secured
Online
Incorporation
order
Form. |
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