Tips for Filing Taxes if Your Company is in Another Country

October 19, 2022

Filing taxes as a business or corporation is a stressful endeavor in and of itself—let alone when you run a company overseas. There are a myriad of hoops you have to jump through to properly document your income and avoid dual taxation. It can be a lot, and without help from some reliable tax experts, you may feel lost.

Our team at Accountants Without Borders lives to connect our clients with tax resources near and far. We specialize in helping clients in the US start businesses abroad and clients abroad start businesses in the US. Our team of highly trained international tax accountants are not only skilled at what they do, but have a burning desire to help people achieve their professional goals. Now, if you’re a US citizen expecting to file taxes for a business located outside the US in the near future, consider the following tips for filing taxes in another country.

1. Work with an international tax accountant

One of the most important ways to stay on top of your taxes and ensure that you’re both never overpaying and never missing a document, is to work with an experienced international tax accountant. An international tax accountant will have answers to all your burning questions, as well as expertise at filing taxes on foreign soil.

At Accountants Without Boarders, we understand the importance of having someone informed and skilled by your side to help you navigate the tumultuous process of filing your taxes. Our goals are beyond money or a bottom line, we seek to fulfill a philanthropic endeavor of helping our clients achieve their dreams through financial assistance. With an international tax accountant at your side, you’ll never have to wonder if you’re doing the right thing at the right time.

2. Document and report everything

As a US citizen operating an international business, it’s crucial to be aware of the special income reporting and documentation requirements you must abide by. One such filing requirement is FBAR or Foreign Bank Account Report. The FBAR was established by the US government in the hopes of snuffing out any sort of tax evasion individuals with offshore accounts may try to take part in.

FBAR encompasses a range of tax documents under its umbrella, including Form FinCEN 114. If your business has a foreign account balance of at least $10,000 or more at any time during the fiscal year, you are required to file Form FinCEN 114 electronically by April 15th. It’s easy to feel overwhelmed when you get into the nitty gritty details of income documentation and reporting, but as long as you keep comprehensive records of your earnings, write offs, and all other financial movements in your international business, with the help of an international tax accountant you’ll be more than fine.

3. Use deductions and avoid dual taxation

Deductions are vital when it comes to filing your taxes internationally. When filing taxes for an international business, you run the risk of overpaying via dual taxation. While the US certainly has specific measures and deductions in place to avoid dual taxation, it’s important to be clear about what deductions you qualify for. Your experienced international tax accountant can walk you through which deductions you qualify for and how to file for them.

Need help filing taxes internationally? Contact Accountants Without Borders today!

Our financial experts can at Accountants Without Borders can assist from your company’s inception to filing for your first fiscal year. If you’re a US citizen running a business internationally or vice versa, reach out to our dedicated team at Accountants Without Borders today.

During our road trip on highway 66 we stopped at a local shop and I spotted in a dark corner this old map with pins and currencies left by visitors from all over the planet.