2020

International Tax Series - Part 3: US business expansion, localised development

Source: National

Published Date: 21 Oct 2020

 
As the Masks business continues to successfully expand into the US market, Jane and Judy make the decision to expand their presence in the US from the "beach head' branch to a more permanent presence involving the establishment and operation of a local US entity (USCo).

USCo will act as the US business operator, including acting as an agent or as a distributor for the Masks business in the US, employing local personnel to fulfil management, business development and operational roles as required.

Depending on demand and supply, USCo will also ideally establish local manufacturing facilities in the US and develop iterations of the core IP of the business.

Some of the issues addressed in this session included:

  • what type of entity to establish
  • treatment of the US entity for Australian tax purposes
  • differences in tax outcomes of agency vs buy/sell
  • secondment of employees and PE risks for Australian legal employers
  • funding, including thin capitalisation
  • issues and implications of tax residency, both under domestic tax law and treaty
  • transfer pricing US tax issues, including state and local as well as federal, concessions and exemptions, indirect tax issues etc.

US business expansion, localised development

Author(s): Elizabeth Cullinan , Scott Hes

Details

  • Published On:21 Oct 2020
  • Took place at:Online

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research critisism or review, as permitted under the copyright Act, no part may be rerpoduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

This material is copyright. Apart from any fair dealing for the purpose of private study., research, critisism or review, as permitted under teh copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opininons are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

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