Expatriate Taxation

PRIMARY CONTACTS: Matthew S. Legg CPA

The international relocation of executives and key employees happens frequently in today’s business world. The immigration laws and tax implications of such relocation generate a lot of complexity, both for the company and the employees.   

How can Schneider Downs help? Our team of tax professionals can provide support from both the employer and employee perspective. For individuals moving into or out of the U.S., we can assist with:  

Country Tax Briefing-Employer Checklist  

We will provide the company with a general overview of the local country tax structure, including permanent establishment thresholds, treaty applicability, payroll tax considerations, and other pertinent items. We will also provide a commentary regarding local country taxation of benefits, options, etc. 

Tax Considerations-Employee Checklist  

We will provide a checklist with general expatriate tax information (i.e., what are the U.S. tax consequences of working overseas) and your specific country tax information, such as the local country taxability of employer-provided items and general tax structure.   

Expatriate Tax Briefing (Pre-departure)  

We will arrange the pre-departure meeting with individuals to review the local country and U.S. tax considerations related to their assignments. We will help to minimize their global tax burden and avoid negative surprises in the relocated country.   

U.S. Federal and State Returns   

We will provide U.S. tax compliance services to eligible employees.  

Local Country Tax Returns  

We will coordinate with local country service providers to ensure employees’ compliance with host country filing requirements.  

Country Tax Briefing-Employer Checklist  

We will provide the company with a general overview of the local country tax structure, including permanent establishment thresholds, treaty applicability, payroll tax considerations, and other pertinent items. We will also provide a commentary regarding local country taxation of benefits, options, etc.  

Form W-2 Gross-up Calculations  

We can work with your payroll department to calculate current-year Forms W-2 including amounts for grossed-up benefits, thereby minimizing the need for amended returns.  

Hypothetical Tax and Equalization Calculations  

These calculations will assist the company in maintaining expatriates’ tax neutral positions. We will work with you and the employees to calculate hypothetical tax (so that the appropriate amount can be collected from the employees) and we will “true up” that calculation after the U.S. returns are filed. We will work with you to establish acceptance and sign-off procedures, in accordance with the Internal Revenue Code and other regulations.   

About Schneider Downs Tax Advisors 

With one of the largest regional tax practices in the country, Schneider Downs Tax Advisors’ personal focus on clients and in-depth understanding of current issues ensures that clients are complying with tax filing requirements and maximizing tax benefits. Our industry knowledge and focus ensures delivery of technical tax strategies which can be implemented as practical business initiatives. Learn more at www.schneiderdowns.com/tax-services.

case studies
 
                                    Company impacted by ransomware.
big problem:
Company impacted by ransomware.
big thinking:
Restore system on-site and avoid six-figure ransom.
 
                                    Inefficient tax credit realization.
big problem:
Inefficient tax credit realization.
big thinking:
Identified a $900,000 tax credit, nearly twice as much as prior years.
our thoughts on

E.U. Environmental, Social, and Governance Proposals under CSRD and their Impact on U.S. Companies

Learn more about the impact on U.S. companies following the European Union's required disclosures covering Environmental, Social, and Governance (ESG) reporting.

read more >

Most Schedule K-2 and K-3 Reporting Can Now Be Postponed Until 2022 Tax Return Filing

Better understand the transition relief from Schedule K-2 and K-3 reporting for certain domestic partnerships and S corporations.

read more >

E-filing of New Pass-Through Schedules K-2 and K-3 Starts in March

Read about how and when taxpayers with international tax items can electronically file the IRS' new Schedules K-2 and K-3 with their Forms 1065 or 1120-S.

read more >

Build Back Better Tax Legislation Update – International Tax Changes

This article summarizes the proposed changes regarding international tax provisions of the Tax Cuts and Jobs Act (TCJA). The Build Back Better proposal will mainly affect the Global Intangible Low-Taxed Income (GILTI) regime, Subpart F regime and foreign tax credit, Section 250 deduction, and Foreign-Derived Innovation Income (FDII), BEAT, and SHIELD.

read more >

Proposed Tax Changes to GILTI

Learn more about the Global Inclusion of Low-Tax Income (“GILTI”) and how the proposed changes may impact you.

read more >

IRS Announces New Update Regarding Streamlined Filing Compliance Procedures and Section 965

Learn more about the IRS announcement regarding Streamlined Filing Compliance Procedures and Section 965 and how to come into compliance.

read more >

Looking for Clarity from the IRS Regarding Foreign Activities? Be Careful What You Wish For!

Learn more about the IRS' guidance on reporting requirements if you own a foreign entity or joint venture.

read more >
contact us
Pittsburgh

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.

×