BNR: Trump’s supplementary tax for European business owners with American passports
BNR News Radio: small businesses owned by European business owners who hold American passports won’t escape Trump’s retrospective supplementary tax
According to BNR news radio, small businesses in Europe are not exempt from Trump’s 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.
Trump’s supplementary tax for European business owners
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.
Trump’s additional, one-off tax
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.”
Consequences for European business owners with American passports
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.”
Americans Overseas has advice for business owners in Europe with American passports
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.