Companies and individuals alike across the U.S. call on Freed Maxick to assist with expatriate tax planning and compliance. Globalization of the economy has caused consolidation of businesses in many industries. As a result, employees are routinely transferred between countries for short-term or longer assignments to manage the newly combined or separated operations. This transferring can create issues when it comes to sorting out tax filing and withholding requirements in the host country and the United States.
American citizens who transfer abroad remain subject to the full force and effect of U.S. tax reporting and payment requirements. In order to ensure a U.S. transferee is not adversely affected by a higher global tax burden, many employers agree to tax equalization as part of the compensation package. This includes Foreign Bank Account Reporting (FBAR) and Foreign Account Tax Compliance (FATCA) filings. While it may not harm or affect the employee, it can lead to substantial costs on the employer’s part.
Our international tax professionals make sure your international employees, both U.S. citizens working abroad and foreign citizens temporarily present in the United States, are taxed at the lowest rate possible. We also look for ways to reduce your U.S. and foreign social security taxes, payroll taxes, withholding taxes and other taxes as well as limit your exposure to taxation in host countries.