
BNR News Radio: small businesses owned by European business owners who hold American passports won’t escape Trump’s retrospective supplementary tax
There has been a rude awakening for American-owned businesses in Europe. American tax authorities will now collect a one-off 15.5% from the profits that companies have been making outside of the US. This is thanks to Trump’s new tax overhaul.
The tax can also have an impact on European BVBA/SPRL/SARL/S.L., according to Americans Overseas in the Financieele Dagblad. These companies seem to be in the same boat as giant multinationals such as Apple, Google and Pfizer, which are being taxed for amounts that they were previously able to store unencumbered in tax havens. While the smaller American businesses have been paying their taxes here. The additional assessment is intended for American companies that want to return capital to the United States.
But that is not the case with the smaller companies that are affected, says Daan Durlacher from the Americans Overseas organization. The one-off tax is imposed on owners of European BVBA/SPRL/SARL/S.L., in which more than 50 percent of shares are held by someone in possession of an American passport or Green Card.
“At Americans Overseas, we are angry and outraged by the politics of it all,” says Durlacher. “Once again the powers that be have allowed this to happen and aren’t protecting these European companies, which means they end up having to bear the burden of a law that was meant for a very different purpose.”
Durlacher outlines the consequences for European businesses who are affected by the American tax overhaul. “These businesses will take that 15 percent from their companies. My advice to the companies concerned is to consult with a tax specialist to determine the financial consequences for them in their country of residence. Thereafter the 15 percent goes into Trump’s coffers.”
We, the founders of Americans Overseas, were born in Europe and obtained our American nationality through our (American) mother. When we heard about this for the first time around 2013, we were in total disbelief (it can’t be true!), anger (how can they do this?), fear (am I going to get fines or pick up other problems?), and panic (what should I do?). It is (unfortunately) true that there is an additional American tax levy. But there’s no information from local government, and when approached, the consulate referred us to the IRS, and the IRS was impenetrable.
That’s why we started this initiative to help people from all over the world by providing proper information to avoid unnecessary panic, and offering help free of obligation and free of charge. If needed, we have a network of affordable professionals (accountants) who can help you with the new tax laws.
Are you an entrepreneur in Europe holding an American passport, and do you have any questions about Trump’s supplementary tax and the American tax compliance? If so, contact Americans Overseas.
Understanding the US tax system, the obligations, and all the additional terms can be difficult. Especially if one lives outside of America. Is your question not answered? Contact us.
U.S. citizens and resident aliens who live abroad are generally required to file a federal income tax return and pay taxes on their worldwide income.
Read more... about Who is required to file taxes in the US?Yes, US citizens are required to file taxes on their worldwide income, regardless of where they are living.
Read more... about Do US citizens living abroad still have to file taxes in the US?Received an American check? You can cash your check in the following ways: cash the check at your own bank, transfer to another person (endorsement), cash checks using an online service or cash the check by another bank.
Read more... about How can I cash my US check?US citizens living abroad may be required to file Form 2555 and/or Form 1116 to claim the foreign-earned income exclusion.
Read more... about Are there any special tax forms required for US citizens living abroad?FBAR (Foreign Bank Account Report) filing is the requirement for certain U.S. individuals and entities to report their foreign financial accounts to the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury. The FBAR filing requirement applies to U.S. persons who have a financial interest in, or signature authority over, one or more foreign financial accounts if the aggregate value of those accounts exceeds $10,000 at any time during the calendar year.
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