International Tax Services: Inbound

The difficult current economic environment provides a number of challenges and opportunities for foreign-based MNC's with investments in the US as well as those considering US investments. The complexity of US tax law has a profound effect on foreign-owned US investments and, importantly, the return on investment. US subsidiaries of foreign-based MNCs are taxed on their income from all sources. These complexities, coupled with the comparatively high US corporate income tax rate, have led foreign MNCs to look for opportunities to efficiently manage their US businesses while ensuring that their effective tax rate remains competitive.

Aligning commercial and tax strategies to enhance competitiveness

The interaction between US and foreign tax regimes often provides opportunities for foreign-based MNCs to reduce taxes on a worldwide basis, often resulting in permanent cash savings. Our inbound US tax planning services group is a team of experienced tax professionals who focus on cross-border tax planning to help foreign-based MNC's efficiently align their commercial and tax objectives.

A variety of strategies have been identified, developed, implemented, and documented to help foreign MNCs meet their business needs while maintaining a competitive effective tax rate. In the current challenging economic environment, these strategies may include repatriating cash or redeploying funds to required areas in a tax efficient manner, minimizing tax costs on investment exit, establishing a tax effective structure when exploiting acquisition opportunities and refinancing debt efficiently which can result in an overall lower cost of funds.

Our approach is designed to ensure tax opportunities are maximized and adverse tax outcomes are identified and managed efficiently. These strategies are aimed at ensuring the US business of a foreign MNC plays its part in implementing a globally effective and integrated approach to tax planning for the group. These strategies are carefully designed to ensure that desired tax outcomes are integrated seamlessly into business objectives and operations.

Inbound Washington tax services

To assist foreign-based MNC's with US operations in understanding emerging US tax issues, our Washington National Tax Services (WNTS) group offers the inbound Washington tax service. Our service keeps the US subsidiary and foreign parent company informed of the latest US legislative, regulatory, and planning developments that impact US inbound groups. Importantly, the issues and business opportunities facing each group are unique in many ways. This is why our services are not generic but rather specifically tailored to the challenges and opportunities that face your group's specific industry, facts and issues.

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Setting up and doing business in the US: Pathfinder service

PwC's Pathfinder Service is designed to assist overseas companies with some of the key tax issues, registration and other requirements of setting up a new US business operation. Our unique methodology provides a valuable roadmap for entering the US marketplace and our multi-disciplinary team has the extensive inbound experience required to help ensure a smooth, compliant, and timely set-up.

Our US Pathfinder Service offers assistance and/or coordination in several areas, including:
  • The new inbound US tax structure and choice of entity
  • Incorporating a new US subsidiary company
  • Federal income tax implications and registrations
  • State sales tax and payroll tax implications and registrations
  • Setting up a new US payroll
  • Setting up a new US bank account
  • New employee benefits and insurance matters
  • Federal and state business registrations
  • Site location and government grants
  • Relocating employees to work in the US
Post set-up, we may also assist with your annual US tax returns, on-going tax planning and your day to day US tax affairs.

To discuss your US plans, please contact one of our Pathfinder service professionals.