Tax & Accounting Blog

Residency for Treaty Purposes for Individuals – Part 1

Residency for Treaty Purposes for Individuals – Part 1

The United States has income tax treaties with over 60 countries for the primary purpose of avoiding double taxation. Double taxation occurs when an individual’s country of residence (or citizenship, in the case of U.S. citizens) taxes an individual on worldwide income and the country where income is derived also taxes the individual’s income, typically by … Read More

Partners and Details Firming around FATCA

Partners and Details Firming around FATCA

Foreign financial institutions and governments might initially have groaned when the U.S. Congress passed the Foreign Account Tax Compliance Act in March 2010, but it looks like at least some of them are starting to come around. In February, the U.S. Treasury announced it had partnered with five European nations — France, Germany, Italy, … Read More

New Cost Basis Rules May Be Lost on Many

New Cost Basis Rules May Be Lost on Many

With taxpayers in the throes of planning their 2011 income tax returns, now’s a good time to remind filers not to overlook new cost basis reporting rules governing securities sales. In the past, they had the option of specifying which shares they sold when computing their cost basis. But as of 2011, taxpayers’ account custodians … Read More

Treaty Exemptions for Business Profits – Part 5: A Fixed Place of Business

Treaty Exemptions for Business Profits – Part 5: A Fixed Place of Business

In order for an enterprise to have a fixed place of business, the place of business must be a building or physical location. The premises need not be owned or leased by the enterprise nor used exclusively by the enterprise. It is enough that the space is at the constant disposal of the enterprise. For … Read More

Treaty Exemptions for Business Profits – Part 4: Permanent Establishment

Treaty Exemptions for Business Profits – Part 4: Permanent Establishment

The definition of a permanent establishment may be found in the Permanent Establishment Article (typically article 5) of the applicable treaty. An enterprise has a permanent establishment if it has “a fixed place of business through which the enterprise carries on its business in whole or in part.” It may be a place of management, … Read More