Beyond Form 1042 – Annual Withholding Tax Return for U.S. Source Income of Foreign Persons; find out how to effectively manage global withholding tax compliance outside the U.S.

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December 05, 2013

Lake Forest, CA – June 2013 – In an article titled The Easy Answer – An Integrated Database Solution to Global Withholding Tax Compliance published in the current edition of the California CPA magazine John Garcia and Tim Hart explain some of the potentially costly issues businesses commonly faced when expanding overseas. John and Tim have over 60 years of combined international corporate tax experience. The focus of their article is corporate withholding taxes.

Withholding taxes are incurred whenever an enterprise conducts business across borders and earns income in an offshore jurisdiction, they are typically subject to an income tax on that income in the foreign jurisdiction. If the enterprise does not have a permanent establishment (i.e. taxable presence) in that jurisdiction, the in-country payer of the income is typically responsible for withholding taxes on the income of the foreign enterprise.

The article identifies some of the more common withholding tax scenarios that businesses encounter when expanding overseas.  Additionally, the authors explain how implementing an integrated database solution is the best way for successfully tackling this daunting and costly international tax issue.

To read the full article: http://www.calcpa.org/content/26971.aspx

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JPG Associates Inc. is a California based professional services company specializing in providing accounting, tax and training services for mid-size corporations with an international footprint.  We have over 25 years of experience providing services to major multi-national corporations such as Marriott, Henkel, The University of Phoenix, and CPE, Inc.

John P. Garcia, CPA, MBA
Phone - 877-728-1400
E-mail: [email protected]
Website - http://www.foreigntaxdocumenter.com

[1] http://www.keepeek.com/Digital-Asset-Management/oecd/economics/oecd-economic-outlook-volume-2013-issue-1_eco_outlook-v2013-1-en

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