15 07-24 Puerto Rico Income Tax IncentivesBruce Givner
Instead of expatriating, it is better to consider retaining your U.S. citizenship and becoming a resident of Puerto Rico. You sign a 20 year contract with the government. As a result, as an individual, you can pay zero federal and state tax on local interest, dividends and capital gains. The incentives for business are also phenomenal: a 4% rate with profits paid to owners tax free. A business must have 3 employees of which husband and wife can count as two.
14 06-19 U.S. Treaties - How To Understand And Plan With ThemBruce Givner
IRS publications and forms; list of countries with which the U.S. has income and estate and gift tax treaties; reasons for both types of treaties; situs vs. status transfer tax treaties; German estate tax treaty as an example; treaties vs. the Internal Revenue Code; review of the basic provisions of income tax treaties, including tie-breakers, independent workers, directors, artists and athletes, students and teachers, interest, dividends, royalties, real property income and gains, Publication 901 table examples, double Irish structure.
In this age of global business operations and opportunities, it is a business imperative to have an effective FCPA Compliance Program. In this webinar co-hosted with Paul Murdock of MCG Consulting we explore and discuss Foreign Corrupt Practices Act compliance and actions to achieve a FCPA Compliance Program.
For a full video of the recording visit: https://mco.mycomplianceoffice.com/mco-webinar/foreign-corrupt-practices-act-fcpa-compliance-webinar
Current Tax Planning Techniques in U.S. and International TransactionsWinston & Strawn LLP
The Real Deal webinar, “Current Tax Planning Techniques in U.S. & International Transactions,” focused on the tax issues relating to both domestic and cross-border transactions. In the domestic area, we reviewed structuring and other common tax issues in the acquisition of domestic C corporations, S corporations, and partnerships. In the international area, we covered structuring issues relating to acquisitions of foreign targets by U.S. corporations, as well as current developments related to inversions in light of IRS Notice 2014-52 and new IRS Notice 2015-79.
Tax Guide to Overseas Real Estate Investments for U.S. InvestorsDurise
Before you even begin to consider a jump into the foreign real estate investment pool, it’s important to become as knowledgeable about the entire process as possible. One item that is particularly important to research and understand is the tax implications that go along with property investing overseas. To that end, we’ve put together this tax guide to help U.S. real estate investors gather some much needed tax information.
15 07-24 Puerto Rico Income Tax IncentivesBruce Givner
Instead of expatriating, it is better to consider retaining your U.S. citizenship and becoming a resident of Puerto Rico. You sign a 20 year contract with the government. As a result, as an individual, you can pay zero federal and state tax on local interest, dividends and capital gains. The incentives for business are also phenomenal: a 4% rate with profits paid to owners tax free. A business must have 3 employees of which husband and wife can count as two.
14 06-19 U.S. Treaties - How To Understand And Plan With ThemBruce Givner
IRS publications and forms; list of countries with which the U.S. has income and estate and gift tax treaties; reasons for both types of treaties; situs vs. status transfer tax treaties; German estate tax treaty as an example; treaties vs. the Internal Revenue Code; review of the basic provisions of income tax treaties, including tie-breakers, independent workers, directors, artists and athletes, students and teachers, interest, dividends, royalties, real property income and gains, Publication 901 table examples, double Irish structure.
In this age of global business operations and opportunities, it is a business imperative to have an effective FCPA Compliance Program. In this webinar co-hosted with Paul Murdock of MCG Consulting we explore and discuss Foreign Corrupt Practices Act compliance and actions to achieve a FCPA Compliance Program.
For a full video of the recording visit: https://mco.mycomplianceoffice.com/mco-webinar/foreign-corrupt-practices-act-fcpa-compliance-webinar
Current Tax Planning Techniques in U.S. and International TransactionsWinston & Strawn LLP
The Real Deal webinar, “Current Tax Planning Techniques in U.S. & International Transactions,” focused on the tax issues relating to both domestic and cross-border transactions. In the domestic area, we reviewed structuring and other common tax issues in the acquisition of domestic C corporations, S corporations, and partnerships. In the international area, we covered structuring issues relating to acquisitions of foreign targets by U.S. corporations, as well as current developments related to inversions in light of IRS Notice 2014-52 and new IRS Notice 2015-79.
Tax Guide to Overseas Real Estate Investments for U.S. InvestorsDurise
Before you even begin to consider a jump into the foreign real estate investment pool, it’s important to become as knowledgeable about the entire process as possible. One item that is particularly important to research and understand is the tax implications that go along with property investing overseas. To that end, we’ve put together this tax guide to help U.S. real estate investors gather some much needed tax information.
Startup Basics: Money People and TechnologyRoger Royse
The Royse Law firm offers significant advise that early stage startups should ensure they understand. The slides contain great considerations that startups should utilize. Our team is a full service firm that provides legal counseling to many startups. Please contact us so we can help you ensure the health of your startup. (01/2018)
Doing business in an international context can be daunting. WeiserMazars serves as a bridge between the United States and the global markets, making doing business easier and less risky for our clients. We connect overseas clients with American professionals and service the tax, transaction services and financial reporting needs of foreign entities based in the U.S.
Startup Law 101:How to Avoid Legal Pitfalls that Could Doom Your Startupideatoipo
Presented 12/28/2023
Join us for a presentation of the legal issues that startups and their founders need to know and the common legal pitfalls that affect startup companies. Unlike more mature companies, startups typically do not have large legal budgets and in house legal counsel focused on legal compliance. Nevertheless, startups must be aware of and comply with law, especially with respect to the issues that are unique to startups.
The presentation will cover those unique issues as well as the sometimes surprising and every evolving California rules. In particular, we will summarize:
1. Corporate formation and choice of entity and law;
2. Securities laws;
3. Labor and employment and why virtually evert startup in California is probably out of compliance and what you can do about it;
4. Intellectual property strategies using patent, trademark and trade secret;
5. Protecting your business through agreements;
6. Protecting the founders from personal liability;
7. And more.
The speaker will draw on more than 30 years of startup experience in describing how to manage legal risk on a startup budget.
About the Speaker
Roger Royse is a partner in the Palo Alto office of Haynes and Boone, LLP and practices in the areas of corporate and securities law, tax, and mergers and acquisitions. He works with companies ranging from newly formed tech startups to publicly traded multinationals in a variety of industries. Roger is a Fellow of the American College of Tax Counsel and former chair of several committees of the American Bar Association Sections of Business Law and Taxation. Roger has been an instructor or professor of legal, tax and business topics for the Center for International Studies (Salzburg, Austria), Golden Gate University School of Law and Stanford Continuing Studies. Roger is a nationally recognized authority on agtech – the technology of food production - and the legal considerations for companies in this industry. Roger is also the author of 10,000 Startups: Legal Strategies for Startup Success and Dead on Arrival: How to Avoid the Legal Mistakes That Could Kill Your Startup and has been interviewed and quoted in the Wall Street Journal, Forbes, Fox Business, Chicago Tribune, Associated Press, Tax Notes, Inc. Magazine, Nikkei Asian Review, China Daily, San Francisco Chronicle, Reuters, The Recorder, 7X7, Business Insurance, ABA Journal, Thrive Global and Fast Company.
Startup Law 101 How to Avoid Legal Pitfalls that Could Doom Your Startup.pptxRoger Royse
A presentation of the legal issues that startups and their founders need to know and the common legal pitfalls that affect startup companies. Unlike more mature companies, startups typically do not have large legal budgets and in house legal counsel focused on legal compliance. Nevertheless, startups must be aware of and comply with law, especially with respect to the issues that are unique to startups.
The presentation covers those unique issues as well as the sometimes surprising and every evolving California rules. In particular, we summarize:
Corporate formation and choice of entity and law;
Securities laws;
Labor and employment and why virtually evert startup in California is probably out of compliance and what you can do about it;
Intellectual property strategies using patent, trademark and trade secret;
Protecting your business through agreements;
Protecting the founders from personal liability;
And more.
The speaker will draw on more than 30 years of startup experience in describing how to manage legal risk on a startup budget.
Top Ten Legal Mistakes That Could Doom Your Startupideatoipo
Presented Thursday February 8, 2024
In this video, Silicon Valley attorney Roger Royse, partner at the law firm of Haynes and Boone LLP, summarizes the most common legal mistakes that startup companies and their lawyers make and how to avoid making those mistakes. Some of those mistakes can be rectified, but many will result in your startup company being "dead on arrival" when it comes time for funding or acquisition opportunities. Knowing what those mistakes are and how to avoid them is essential to starting and building a successful company.
Roger discusses those unique issues as well as the sometimes surprising and ever-evolving California rules, including:
1. Corporate formation and choice of entity and law;
2. Securities laws;
3. Labor and employment and why virtually every startup in California is probably out of compliance and what you can do about it;
4. Intellectual property strategies using patent, trademark and trade secret;
5. Protecting your business through agreements;
6. Protecting the founders from personal liability;
7. and more!
Roger draws on more than 30 years of startup experience in describing how to manage legal risk on a startup budget.
About the Speaker
Roger Royse is a partner in the Palo Alto office of Haynes and Boone, LLP and practices in the areas of corporate and securities law, tax, and mergers and acquisitions. He works with companies ranging from newly formed tech startups to publicly traded multinationals in a variety of industries. Roger is a Fellow of the American College of Tax Counsel and former chair of several committees of the American Bar Association Sections of Business Law and Taxation. Roger has been an instructor or professor of legal, tax and business topics for the Center for International Studies (Salzburg, Austria), Golden Gate University School of Law and Stanford Continuing Studies. Roger is a nationally recognized authority on agtech – the technology of food production - and the legal considerations for companies in this industry. Roger is also the author of 10,000 Startups: Legal Strategies for Startup Success and Dead on Arrival: How to Avoid the Legal Mistakes That Could Kill Your Startup and has been interviewed and quoted in the Wall Street Journal, Forbes, Fox Business, Chicago Tribune, Associated Press, Tax Notes, Inc. Magazine, Nikkei Asian Review, China Daily, San Francisco Chronicle, Reuters, The Recorder, 7X7, Business Insurance, ABA Journal, Thrive Global and Fast Company.
Global companies investing in the United States face unique opportunities and challenges. Doing business in the US reviews the key tax issues and provides insights to help investors navigate the US business environment.
2019 Greek Tech Finance Network Presentation on US Entity Structures: Legal, ...marathonvc
Our fast-growing startup community has oftentimes seen companies that start from Greece expand overseas to the point where most of their revenue originates from the United States.
Marathon hosted the Greek Tech Finance Network event with an agenda devoted to Greek startups entering the US, offering practical insights on US incorporation, tax and intellectual property matters.
How Your Company is Affected by the CARES Act and Related LegislationRoger Royse
"Idea to IPO" Webinar description:
The U.S. government is providing relief and stimulating the economy through the $2 TRILLION CARES Act of 2020 and other measures to help corporations, small businesses, and people laid off due to the COVID-19 crisis.
The speaker will discuss:
1) What is the CARES Act of 2020?
2) What does the CARES Act of 2020 hope to achieve?
3) Will there be follow up programs to come?
4) How can entrepreneurs and small businesses benefit from the CARES ACT of 2020?
5) How does one go about applying for grants and loans administered under the CARES ACT of 2020?
6) What are the new rules relating to sick leave and paid leave?
7) What COVID-19 related tax incentives are available to companies?
and more!
How to Get Your Startup Ready for Venture Capital Funding (Idea To IPO)Roger Royse
Venture capital funding is seen as the holy grail for a startup, often improving the company’s chances of a big IPO or exit dramatically. Most companies start their lives with the hope, if not the expectation, that they will eventually receive venture funding. This presentation will cover what a company should do to prepare for venture funding, what steps to take, what the venture capitalists expect and how to avoid venture capital deal breakers.
The speaker will discuss:
1) what types of companies are candidates for venture capital funding
2) the essential assets, qualities or aspects that your company must have to approach a venture capitalist
3) how (and when) you should value your company for venture capitalists
4) how you can protect yourself against dilutive rounds, losing control and being removed from management
5) how to get your company in front of venture capitalists
and more!
Roger Royse discusses the most common legal mistakes made by entrepreneurs and startups. This presentation will focus on issues related to business formation, fundraising, employment, intellectual property, tax, and technology.
Startup Basics: How to Split the Pie, Raise Money and Reward ContributorsRoger Royse
What’s my startup worth? How much equity should founders have? How much equity should I give to employees and consultants? How much should I give the VC’s?
Silicon Valley startup attorney Roger Royse of the Royse Law Firm discusses the basic valuation and ownership issues involved in a startup’s life, from formation to financing to exit, including how to value your company and the contributions of stakeholders and investors at each step with a particular emphasis on different models, best practices and traps to avoid.
Startup Basics: Legal, Business, and Financing StrategiesRoger Royse
Launching a startup - or starting a business - is challenging and is fraught with pitfalls.
Roger Royse, the founder of Royse Law Firm, will discus the basics of building a successful business and how to what mistakes to avoid. Roger will discuss:
1) How should entrepreneurs structure their business?
2) How should founders divide equity?
3) What’s the difference between a contractor and an employee?
4) How does a startup get funded?
5) What is an ICO?
6) How does an entrepreneur successfully negotiate with a VC?
7) How viable is crowdfunding in 2019?
8) How should entrepreneurs protect their intellectual property?
and more!
Funding 101 for Tech Entrepreneurs & StartupsRoger Royse
Roger Royse, founder of the Royse Law Firm, discusses the various options available to entrepreneurs when it comes to funding their startup.
Topics include:
1) What are the best funding options for entrepreneurs to scale their business?
2) When should entrepreneurs pursue external funding?
3) How do entrepreneurs choose the right investor?
4) What alternative sources of funding are available?
5) How and why should a founder stage their funding rounds?
6) When should a founder think about exiting?
7) How can advisors help with the funding process?
Royse Law Firm and BNY Mellon Wealth Management discuss the various legal, tax, and financial scenarios to consider when selling your business.
- Is this a good time in the global economic environment to be planning an exit?
- What personal financial planning is necessary to maximize the benefit of this exit for my family and me?
- What legal, tax, and financial due diligence is critical to ensuring a successful exit?
- What are the key elements to successfully selling your business?
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
buy old yahoo accounts buy yahoo accountsSusan Laney
As a business owner, I understand the importance of having a strong online presence and leveraging various digital platforms to reach and engage with your target audience. One often overlooked yet highly valuable asset in this regard is the humble Yahoo account. While many may perceive Yahoo as a relic of the past, the truth is that these accounts still hold immense potential for businesses of all sizes.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
In the Adani-Hindenburg case, what is SEBI investigating.pptxAdani case
Adani SEBI investigation revealed that the latter had sought information from five foreign jurisdictions concerning the holdings of the firm’s foreign portfolio investors (FPIs) in relation to the alleged violations of the MPS Regulations. Nevertheless, the economic interest of the twelve FPIs based in tax haven jurisdictions still needs to be determined. The Adani Group firms classed these FPIs as public shareholders. According to Hindenburg, FPIs were used to get around regulatory standards.
Welcome To America: Doing Business in the United States
1. WELCOME TO AMERICA
DOING BUSINESS IN THE UNITED STATES
Roger Royse
Royse Law Firm, PC
2600 El Camino Real, Suite 110
Palo Alto, CA 94306
rroyse@rroyselaw.com
www.rroyselaw.com
www.rogerroyse.com
Skype: roger.royse
IRS Circular 230 Disclosure: To ensure compliance with the requirements imposed by the IRS, we inform you that any tax advice contained in this communication,
including any attachment to this communication, is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding penalties
under the Internal Revenue Code or (2) promoting, marketing or recommending to any other person any transaction or matter addressed herein.
3. 3
THE U.S. MARKET
‡ 3.7 Million Square Miles
‡ GNP - $12 Trillion
‡ Free Trade Agreements
- NAFTA, CAFTA, WTO, OECD, APEC, OAS
4. 4
REGULATORY ENVIRONMENT
Open Competition vs. Consumer & Employee Protection
Interstate Commerce vs. Intrastate Commerce
‡ Mergers & Acquisitions ± Federal Trade Commission & Dep¶t of Justice
‡ Securities ± SEC, Public Co. Accounting Oversight Board (PCAOB)
‡ No statutory audit required for private companies (except banks)
‡ Consumer Protection ± Consumer Product Safety Comm. (CPSC),
Environmental Protection Agency (EPA), Food & Drug Admin. (FDA),
Dep¶t of Transportation (DOT), Federal Commercial Comm., Unfair Trade
Laws, Anti-Trust Laws, Customs & Import, Foreign Corrupt Practices Act
5. 5
INTELLECTUAL PROPERTY PROTECTION
‡ Trademark
- word, phrase, symbol or design
- lasts as long as symbol is used
‡ Copyright
- original artistic or literary work, including software
- lasts 70 years after death of creator
‡ Patent
- novel, useful, non-obvious invention in area covering
patentable subject matter; decided by USPTO
- lasts 20 years from grant
6. 6
ACCOUNTING
‡ Tax Accounting
- cash or accrual depending on amount of gross
receipts (> $5 million)
‡ Financial Accounting
- GAAP
7. 7
US BRANCH VERSUS US INCORPORATION
‡ A ͞branch͟ is generally a fixed place of
business (i.e. an office or factory)
‡ Will be taxed on ECI, or ͞business profits͟
attributable to a permanent establishment
‡ Need US Tax ID and FEIN
‡ Branch Profits Tax may apply
‡ No liability shield
‡ Treaty exceptions
‡ Incorporating means a new legal entity
will be established in the US
‡ Such entity will be taxed on worldwide
income
‡ Need organizational documents; bylaws,
management, etc
‡ Need US Tax ID and FEIN
‡ Dividend withholding
‡ Transfer Pricing
‡ Shields liability
US Branch US Incorporation
Foreign Entity
US Branch
Foreign Entity
US Sub
9. 9
CHOICE OF ENTITY
‡ Limited Liability Company (LLC)
‡ Limited Partnership (LP)
‡ C Corporation
‡ S Corporation
‡ Statutory Trust
10. 10
EFFECTIVELY CONNECTED INCOME
‡ Foreign corporations are taxable on
income that is effectively connected
with a US trade or business
‡ Income attributable to a US office or
other fixed place of business
‡ A U.S. trade or business can be carried
on through an agent
‡ A foreign corporation's "independent"
agent will not constitute a US office
but a dependant agent might.
‡ The office of a dependant agent is
disregarded unless the agent has and
regularly exercises the authority to
conclude contracts in the name of the
foreign company or has a stock of
goods belonging to the foreign
company from which orders are
regularly filled on behalf of the foreign
company.
US PE
Foreign
Corporation
11. 11
TRANSFER PRICING
‡ Under Code section 482, the IRS can re-allocate income among ͞controlled͟
entities, such as a Foreign parent and a US sub, to properly reflect income.
The prices charged between such related parties (͞transfer prices͟) are
required to be arm͛s length.
‡ Current regulations impose substantial penalties for understatements of US
tax due to transfer pricing adjustments ʹ 20% or 40% of the underpaid tax,
depending on the size of the understatement. The US sub can avoid penalties,
even if the IRS does not accept its transfer prices, by completing a transfer
pricing study (͞TPS͟) before the income tax return has been filed. The TPS
must meet the requirements of the regulations and apply the best method for
determining the US sub͛s transfer prices.
‡ Most often, the TPS will utilize the comparable profits method for determining
the appropriate transfer price. Such method determines the ͞arm͛s length
price͟ by referring to objective measures of profitability derived from
uncontrolled taxpayers that engage in similar business activities with other
uncontrolled taxpayers under comparable circumstances.
‡ The allocation of income between related entities is a major tax issue for
multi-national companies.
16. 16
EARNINGS STRIPPING
‡ Operating group company structures, with an incorporated subsidiary in the US,
may attempt to shift income away from the US Sub by issuing loans from the
foreign parent to the US Sub requiring the payment of deductible interest back to
the foreign parent. This ͞earnings stripping͟ causes the US Sub to have an overall
decrease in profit (decrease in tax), shifting the additional profit to the foreign
parent (not subject to US tax).
‡ Section 163(j) of the US Tax Code is applicable if ʹ (1) a domestic corporation͛s
debt-to-equity ratio exceeds 1.5:1 (i.e. it is ͞thinly capitalized͟) and (2) the domestic
corporation makes interest payments to a related person exempt from US taxation
(i.e. a foreign entity). Section 163(j) denies the domestic corporation͛s deduction
for interest payments to the extent the total interest deduction would exceed 50%
of the corporation͛s income (before deducting the interest).
Foreign Entity
US Sub
Loan
Interest
Payments
18. 18
FOREIGN PERSONNEL
‡ VISA Requirement
‡ Non-Resident Alien or Resident for Tax
- Green Card
- Substantial Presence Test
- Treaty Definitions
‡ Estate and Gift Tax
- Domicile
19. 19
EMPLOYEE RIGHTS
‡ Minimum Wages & Maximum Hours
‡ Non-Discrimination
‡ Pension Rights ± ERISA & Social Security
‡ Health and Safety
‡ Unemployment
‡ Sexual Harassment
‡ Mass Layoffs (WARN Act)
20. 20
INTER-COMPANY AGREEMENTS
‡ Shipping Terms
‡ Payment Terms
‡ Risk of Loss & Title Passage
‡ Insurance
‡ Most Favored Nation Clauses
‡ Price Protection
‡ Indemnity
‡ Warranty
‡ Trademarks & Marking
21. 21
REAL ESTATE
SECTION 897 ± FOREIGN INVESTMENT IN REAL
PROPERTY TAX ACT OF 1980 (FIRPTA)
‡ Section 897
± Treats gain or loss of a non-resident alien individual or foreign corporation from the
disposition of an investment of a ͞United States real property interest͟ as if such
gain or loss were effectively connected to a US T/B.
± The term ͞United States real property interest͟ generally means, (A) an interest in
real property located in the US; or (B) a domestic corporation that was considered
a ͞US real property holding corporation͟ at any time during the last 5 years. A ͞US
real property holding corporation͟ is any corporation where (A) the FMV of its US
real property interests exceeds, (B) the FMV of (i) its US real property interests,
plus (ii) its interests in real property located outside the US, plus (iii) any other of its
assets held for use in a trade or business. However, if such corporation already
disposed of its real property in a fully taxable transaction, it will be excluded.
± Under Regulations, assets held by a partnership, trust, or estate shall be treated as
held proportionately by its partners or beneficiaries.
‡ Withholding
± Generally, all FIRPTA income will be subject to withholding at 10% of the amount
realized. Foreign country treaty may offer residents relief from US taxation.
22. 22
WITHHOLDING TAXES
TREATY EFFECT
‡ Dividend Relief
± An entity that is a ͞resident͟ under the Treaty will pay a reduced rate of
withholding tax on dividends.
‡ Interest Relief
± An entity that is a ͞resident͟ under the Treaty will pay a reduced rate of
withholding tax on interest.
‡ Royalties Relief
± An entity that is a ͞resident͟ under the Treaty will pay a reduced rate of
withholding tax on royalties and fees for ͞included services͟.
± ͞Included Services͟ are generally technical services ancillary and subsidiary to
the enjoyment of the intellectual property rights.
‡ Service Income Relief
± An individual performing services in the US, (1) as an employee of an entity may
avoid US taxation if the individual is present in the US for less than 183 days and
the compensation is not borne by the foreign entity͛s ͞permanent
establishment͟ in the US, and (2) as an independent contractor may avoid US
taxation if the individual renders professional services, without a fixed base in
the US, and without staying in the US for 90 days (or more) during the taxable
year.
24. 24
COST SHARING
US
Company
Foreign
Operations
Company
Buy In
Payment
Ownership
Of Intangibles
‡ Split ownership of Intangibles
‡ Share costs and exploitation rights
‡ No Intercompany Royalty
‡ Can migrate intangibles to
‡ Low tax country
‡ Current Problems:
‡ Nonexclusive
‡Technology reverts on termination Capital
Technology
Distribution Network
25. 25
INTERNATIONAL E-COMMERCE
OPERATIONS
US or Foreign
Company
International
Holding
Company
Server
Company
Local
Country
Company
License/Royalty
Commission/Fees
Customer
Fees/Sales
Royalties
Cost
Sharing
License
Deemed
Sale
26. 26
SALES TAX
‡ R&D Contracts nontaxable under true
object of the contract test
‡ Navistar v. SBE ʹ sale of drawings and
manuals were taxable
‡ Transfer via Remote Telecommunication
‡ Custom made software: Reg. 1502(f)(2)
‡ Publishers Exemption: Reg. 1502(f)(1)(B)
‡ State Sales Tax Nexus Determinations
‡ Collection / Withholding of Sales Tax
27. 27
STATE TAX ISSUES
California
Parent
Nevada IP
Holding Co.
IP Transfer License
Back
Services Income
‡ Employees
‡ Admin, legal and commercial registrations
‡ Enforcement
‡ R&D, commercialization
‡ Payroll tax withholding
30. 30
PALO ALTO
2600 El Camino Real
Suite 110
Palo Alto, CA 94306
SAN JOSE
10 Almaden Blvd.
Suite 1250
San Jose, CA 95113
LOS ANGELES
10900 Wilshire Blvd.
Suite 300
Los Angeles, CA 90024
SAN FRANCISCO
155 Sansome Street
Suite 500
San Francisco, CA 94104
www.rroyselaw.com