if you are doing business internationally, the clouds part & multiple opportunities to save money in international taxes comes shining through. Apple saved billions with its international tax strategies as did Caterpillar, Google & other global companies.
We are experts at helping businesses immigrate into the U.S.where they have to deal with a more complex tax environment. No other country has the complexity of 50 different state income taxes. Plus sales tax is an oddity in the world, but each state, city & various special taxing districts in the United States can levy sales tax on a sale. This is easily handled, but it can be daunting to a foreign company not expecting the complexity.
Some global 5000’s including Apple from what i’ve read, mix & match various countries to establish tax residence in, based on their national income tax rate. I’m sure that’s true. That’s smart.
International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). In international tax strategies, we take advantage of tax rate differentials among 171 countries to cut income tax to the legal minimum. There are a wide variety of tax rates among nations & other jurisdictions that can be mined for substantial tax savings.
International taxation can become a massive competitive advantage. Consider Apple. See our blog post. Steve Jobs returned to Apple in 1997 with the company on the brink of bankruptcy. He laid off 2/3 of the staff and cut cut costs to save Apple. From then until 2011, 14 years later, they were continually profitable until Apple became the most valuable company in the world. They have continued profitable and most valuable company until this day. Apple even became the first trillion dollar company for a bit in 2018.
How did Apple achieve that? Their great products were part of the answer. But another part, perhaps even more important part, was Apple’s tax strategies, Their most significant tax strategies, The Double Irish with a Dutch Sandwich, produced billions in tax savings in the 14 years before becoming the most valuable company in the world. Without those billions, Apple would never have become most valuable company.
We help foreign companies immigrate to the US. Turmoil in other countries, notably South Africa, combined with our current tax atmosphere is making the US look very appealing. Especially if they are doing business internationally. US taxation from sales tax to state Income tax and Federal income tax leaves them shaking their heads. Many don’t have an international tax strategy in place either. These companies can save a tremendous amount of headaches and taxes by using Ellis to navigate US tax issues. If you refer them to us, we will take good care of them. And in the process you can increase your influence as a trusted adviser or savvy businessman.