Planning Considerations Abound for Outbound Sales Activities

Outbound sales by a U.S. corporation into a foreign country require considerable up-front planning to ensure the best possible tax treatment. U.S. sellers must look closely at their business objectives and their individual tax picture when determining the appropriate structures to use in classifying outbound sales, according to attorneys David Buss, David Hryck, and Robert Rothman in a recent issue of TAXES: The Tax Magazine. Practitioners must begin with two fundamental questions:

  • Will the earnings from foreign sales be repatriated or will they remain abroad for a significant period of time?
  • Is the effective tax rate in the foreign country lower or higher than in the U.S.?

Buss, Hryck and Rothman walk practitioners through potential answers to each of those questions and how those answers will affect the tax planning process. They use specific scenarios to demonstrate the planning techniques that must be used.

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This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.

Read this article from CCH’s Journal of Taxation of Financial Products.

AUTHOR

Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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