Key Takeaways: - Residential Status - Visa Types - Dependent and Independent Personal Services - Base Erosion and Anti-Abuse Tax - Sales Tax - Practical Case Studies

1. SQUIRE.COM
SALT LAKE: 215 SOUTH STATE STREET, SUITE 850 / 801.533.0409 OREM: 1329 SOUTH 800 EAST / 801.533.0409
Doing Business In the United States -
Part 3
Joe Hillstead
Sierra Hoggatt

2. • Recap of Webinar 1
• Recap of Webinar 2
• Visa Types
• Dependent Personal Services
• India, Singapore, Dubai
• Independent Personal Services
• India, Singapore, Dubai
• BEAT
• Sales Tax
Agenda

3. • United States Overview
• Financial Statement Audit Requirements
• Choice of Entities
• Income Tax
• US Trade or Business
• Effectively Connected Income
Recap of Webinar 1

4. • Payroll taxes
• Transfer pricing
• CARES Act Impacts on Business in the US and tax
relief measures
Recap of Webinar 2

5. • L-1A: Intracompany transferees who work in managerial or
executive positions in a company that is located outside the
United States
• L-1B: Intracompany transferees who work in positions
requiring specialized knowledge
• Qualifying relationship with foreign company (parent company,
branch, subsidiary, affiliate) AND
• Doing business as an employer in the US and in at least one
other country directly or through qualifying organization
• Seeking to enter the US to provide service in an executive or
managerial capacity for a branch of the same employer or one
of its qualifying organizations
Visa Types

6. • H-1B: Specialty Occupations
• Occupation requires application of highly specialized
knowledge
• Attainment of a bachelor’s or higher degree in specific
specialty
• Hold a foreign degree equivalent to US bachelor’s degree
or higher
Visa Types

7. • E1: National of treaty country engage in international
trade on own behalf
• Be a national of a country of which the US maintains a
treaty
•
• Carry on substantial trade AND
• Carry on principal trade between US and treaty country
Visa Types

8. • E2: Investor in US business
• Be a national of a country with which the US maintains a
treaty
• Have invested substantial capital in US enterprise
• Seeking to enter US to develop and direct the investment
enterprise
Visa Types

9. • EB-5: Foreign investors stimulating the US economy
through job creation and capital investment
Visa Types

10. • Permanent Resident Card
• Allows you to live and work permanently in the US
• Steps vary depending on individual situation
Green Card

11. India
• Compensation derived by an Indian resident in respect
of employment exercised in the US:
• Not exceeding 183 days
• Compensation paid by Indian employer
• Compensation is not born by permanent establishment
• Compensation not taxable in the United States
Dependent Personal Services

12. Singapore
• Currently no tax treaty between the US and Singapore
Dependent Personal Services

13. United Arab Emirates
• Currently no tax treaty between the US and United
Arab Emirates
Dependent Personal Services

14. India
• Compensation derived by an Indian resident in respect
of independent contractor services exercised in the US:
• Not attributable to a fixed based regularly available to him
• If stay is less than 90 days in aggregate
• Compensation not taxable in the United States
Independent Personal Services

15. Singapore
• Currently no tax treaty between the US and Singapore
Independent Personal Services

16. United Arab Emirates
• Currently no tax treaty between the US and United
Arab Emirates
Independent Personal Services

17. Base Erosion & Anti-Abuse Tax

18. • 45 states currently have sales and use tax
• Average US sales tax rates today are 8.5%
• Imposed on the end consumer – unlike VAT
• Transaction taxes (transaction taxes, not
goods/services)
Sales Tax

19. • No federal sales tax, value-added tax, or federal goods and
services tax in the US
• Indirect taxes can be collected at both the state and local
levels. Over 13,000 state and local tax jurisdictions just for
sales tax alone
• States impose sales tax collection and remission liability on
the seller once certain thresholds are met (number of
transactions or dollar amount of sales)
Sales Tax

20. • Nexus – enough of a connection to a state
• South Dakota vs Wayfair - $100,000 sales of 200 or
more separate sales transactions
• Companies no longer have to have physical presence
to create a connection with a state
Sales Tax Nexus

21. • Creates a compliance burden for ecommerce
companies
• Domestic and foreign companies impacted
• Large online retailers were largely unaffected. Small
and medium-sized businesses are largely impacted
• Low value transactions may create sales tax nexus
Ecommerce and Online Sellers

22. Common events/activities that can create nexus in a state:
• In-state personnel
• Sporadic visits
– Most frequently litigated issue
– Courts have reached different results
– Vendor owned vehicles vs. common carrier
• Trade shows and seminars
• Physical presence of property
– Amazon FBA arrangement
– May create sales tax nexus without knowing
• Economic nexus (Wayfair)
Nexus Creating Situations

23. • Will be impacted by large and growing federal deficits
• Tightened international tax rules beginning in 2026
Future of US Tax Policy

24. Thank You!
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