Cross-Border Tax Advisory

Services We Offer:

• Tax Planning: Collaborate with us to create a customized tax strategy aligned with your unique goals. We will dicuss what you can do today in order to create the maximum tax savings in the future.

• Tax Return Preparation: Our team streamlines cross-border tax law navigation, ensuring full compliance with regulations. We prepare both US and Canadian tax returns.

• International Tax Structuring: Optimize your business structure to minimize tax liabilities and enhance profitability. Our experienced team excels in international tax structures, crafting the ideal solution for your business.

• Tax Advice for Expats: Gain expert insights into tax obligations for individuals working and living abroad. Stay compliant with tax laws in both your home country and country of residence.

• Tax Dispute Resolution: If a tax dispute arises, we leverage our experience with global tax authorities to efficiently protect your interests.

At DimovTax, we’re committed to providing top-tier service and expertise, assisting you in overcoming the challenges of international operations. Connect with us today to discover how we can address your cross-border tax needs.

The Cross-Border Trade Act establishes rules for taxing goods and services traded between countries. It defines how customs duties, tariffs, and taxes apply to international transactions, while setting standards for tax collection and enforcement across borders. In the US, this legislation works alongside international tax treaties to determine how cross-border business activities are taxed.

Cross-border withholding tax is a percentage of income deducted at the source when payments are made from one country to another. This applies to various types of income including dividends, interest, royalties, and certain services. The withholding rate varies based on tax treaties between countries and the type of income involved.

Cross-border tax refers to tax obligations that arise when individuals or businesses conduct activities across national boundaries. This includes income earned in foreign countries, international investments, overseas property ownership, and multinational business operations. These transactions often involve tax considerations in multiple jurisdictions and may be subject to various tax treaties.

The standard US withholding tax rate for foreigners is 30% on investment income such as dividends, interest, and royalties. This rate may be reduced through tax treaties, with many countries qualifying for rates between 5-15%. Different rates apply to wages and business income, which follow separate withholding rules under US tax law.

Yes, if you have US source income. Non-resident aliens must pay US taxes on income earned from US sources, including wages, investments, and business profits. The specific tax obligations depend on your residency status, the type of income, and whether your country has a tax treaty with the US. Green card holders and tax residents must report worldwide income.

Yes, you can claim a refund of excess US withholding tax by filing Form 1040NR. This applies when the withholding exceeds your actual tax liability or when you qualify for reduced rates under a tax treaty. Claims must be filed within three years from the original due date of the return or two years from when the tax was paid.

For 2024, non-resident aliens can claim a personal exemption of $4,150 through tax treaties. Additionally, foreign earned income exclusion allows US citizens and residents abroad to exclude up to $120,000 of foreign earned income. Specific exemption amounts vary based on residency status, income type, and applicable tax treaties.