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International Taxation - Foreign Persons Trade/ Business and U.S. - Sourced Income - Research Paper Example
Author : katheryntillman
Finance & Accounting
Pages 4 (1004 words)
International Taxation - Foreign Persons Trade / Business and U.S. - Sourced Income Introduction Investments in the start-up companies as well as exiting leading multinational companies in US are attractive to the foreign investors due to the favourable political, social and economic policies of the government…
The rules and the tax implication to the foreign investors who invest in US companies will be reviewed with rational judgment throughout this research study. Research Objective The objective of this research is to identify the rules related to investment by foreign persons in the US companies and assess the tax implications for the foreign investors in investing in US companies. Literature Review Foreign investment in the US is an attractive destination for the foreign investors due to the favourable political, social and economic conditions in the country. The foreign investors get the benefits of tax incentives, comparatively lower wages and favourable rule for foreign investment in US. The investment by the foreign investors in the automobile sector is also subject to rules and regulations of the Federal government. The Committee on Foreign Investments in US decides on the proposal of foreign investments and also looks at the feasibility and security aspect of the investments. The rules are governed by the committee for foreign investment in the US (Jacobs and Duke, 2006). The foreign companies willing to invest in US are required to voluntarily submit a proposal to the committee which is reviewed by them within a period of 30 to 45 days for the necessary sanction. The rules governing the foreign investors include a check on the regulatory compliance risk of the companies. ...