Creating a Taxable Presence Internationally

by | Jan 23, 2012 | PKF Texas - The Entrepreneur's Playbook®

Note: Running weekly in, PKF Texas – Entrepreneur’s Playbook® is a continuing series of tips brought to you by Greg Price. These run Sunday evenings during the BusinessMakers Radio Show on KPRC 950AM.

PKF Texas: The Entrepreneur’s Playbook® – International Taxes from The Businessmakers on Vimeo.

Greg: This is PKF Texas, and another edition of the Entrepreneur’s Playbook. I’m Greg Price, director of Consulting Solutions, and I’m here with Rafael Carsalade, a tax director at PKF Texas. Rafael, welcome to the Playbook.

Rafael: Thank you for having me here, Greg.

Greg: So, Rafael, you specialize in international tax. So if someone’s getting ready to business overseas, are there any issues or pitfalls one needs to be aware of?

Rafael: One common is to make sure not creating a taxable presence for yourself in the foreign country which you’re doing business with.

Greg: Wow. How does that happen?

Rafael: It can happen fairly easily if you spend too much time in the country, or maybe even if you just have some goods store in there for a temporary amount of time, for example.

Greg: So, Rafael, if you accidentally have this happen to you, what are kind of your options to deal with this?

Rafael: Well, there are two different categories of issue. One is whether the country you’re dealing with has a tax treaty with the US, and the other is countries that don’t have a tax treaty with the US.

Greg: Well, I can see, Rafael, this is a very important topic. Would you come back next week, and we’ll talk about this some more?

Rafael: Absolutely.

Greg: Fantastic. So we’re gonna have Rafael back for another segment on international tax. This has been a Thought Leader production, brought to you by PKF Texas, the Entrepreneur’s Playbook. Tune in next week for another chapter. And remember, if you’re doing business internationally, give PKF Texas a call.

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