U.S. companies with locations in foreign countries frequently owe withholding tax to those foreign jurisdictions. Though some companies may be able to credit withholding taxes against their U.S. income tax liability, many do not qualify for foreign tax credits.
CBIZ withholding tax minimization specialists work closely with companies that are not eligible for tax credits to minimize their withholding tax burden. We evaluate whether withholding companies may be a good fit . Withholding companies established between the U.S. company and the foreign subsidiary can reduce or even eliminate the U.S. company’s withholding tax obligations. These withholding companies can perform functions for offshore operations and help companies use pre-U.S.-tax dollars to finance expansion and operations abroad.
A number of other solutions we provide also assist our clients in reducing their tax burden. Our tax specialists can also consider whether your company would benefit from international tax minimization or transfer pricing studies, which can both lower companies’ worldwide effective tax rate.
Through personalized, attentive service, we strive to provide our clients with the solutions they need to maximize their marketplace position and increase internal their profitability. Learn more by contacting your local CBIZ MHM office.