Everything Taxes
NAVIGATE U.S. AND INTERNATIONAL TAX LAWS
The U.S. has long been a stable and inviting market for foreign investors. The U.S. is a country known for “doing business”, however, there are many challenges, both on international and U.S.-specific levels, which must be addressed to ensure effective and efficient operations in the U.S.
Your venture into the U.S. market should be thoroughly planned in advance to avoid obstacles to your company’s economic success. Our experts know how to navigate U.S. domestic and international tax laws and can ensure that your actions today won’t be obstacles to your company’s economic success in the future.
THREE LEVELS OF TAXATION
The tax sovereignty is
(a) to the federal government (Federation),
(b) to the 50 states (States) and the District of Columbia and
(c) to the local authorities (counties and municipalities)
Each of these levels has its own tax legislation, tax revenue and tax administration authority.
Therefore, in principle, taxes are cumulative on all three levels.
For German companies with branches or subsidiaries or group companies in the USA, the following taxes are generally of particular importance at the relevant levels (federal, state, local):
Corporate Income Tax
State: 2.5% -12% depending on the state (some states do not impose corporate tax or a tax based on gross profit).
Local: e.g. New York City 8.85%.
Franchise and Property Taxes
Only at the State & Local levels.
Individual Income Tax
State: 1% -13.3% depending on the state (some states do not levy income tax).
Local: e.g. New York City 3,876%.
Inheritance and Gift Tax
Federal: 18% -40% (depending on the tax base amount).
State: 1% -20% depending on the state, with most states levying no inheritance or gift tax.
Sales & Use Taxes
Only on the State & Local levels and usually only for delivery or service to the end consumer of the asset (not comparable with the German sales tax system). Combined State & Local tax rates range from 0% -9.55%.
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