Tax Treaty Archives | SF Tax Counsel

01Dec 2023 by Anthony Diosdi

A Closer Look at the U.S.- Canada Tax Treaty Article Governing the U.S. Estate Tax

Tax Treaty

By Anthony Diosdi The United States imposes estate and gift taxes on certain transfers of U.S. situs property by “nonresident citizens of the United States.” In other words, individual foreign investors may be subject to the U.S. estate and gift tax on their investments in the United States. The U.S. estate and gift tax is assessed at a rate of 18 to 40 percent of the value of an estate or donative transfer. An individual foreign investor’s U.S. taxable estate or donative transfer is subject to the same estate tax rates and gift tax rates applicable to U.S. citizens or residents, but with a substantially lower unified credit. The current unified credit for individual foreign investors or nonresident aliens is equivalent to a $60,000 exemption, unless an applicable treaty allows…

22Nov 2023 by Anthony Diosdi

A Closer Look at the U.S.- U.K. Estate and Gift Tax Treaty

Tax Treaty

By Anthony Diosdi Foreign investors generally have the same goal of minimizing their tax liabilities from their U.S. real estate and other U.S. investments, as do their U.S. counterparts, although their objective is complicated by the very fact that they are not domiciled in the U.S. The U.S. has a special estate and gift tax regime that is applicable to foreign investors that are not domiciled in the U.S. Sometimes, with proper planning, foreign investors can avoid U.S. estate and gift taxes. This article discusses the special provisions of the U.S.- United Kingdom or (“U.K.”) estate and gift tax treaty foreign investors should consider when planning to avoid or mitigate U.S. estate and gift taxes.An Overview of the Estate and Gift TaxU.S. Federal law imposes a transfer tax upon the…

20Nov 2023 by Anthony Diosdi

A Closer Look at the U.S.- Germany Estate and Gift Tax Treaty

Tax Treaty

By Anthony Diosdi Foreign investors generally have the same goal of minimizing their tax liabilities from their U.S. real estate and other U.S. investments, as do their U.S. counterparts, although their objective is complicated by the very fact that they are not domiciled in the U.S. The U.S. has a special estate and gift tax regime that is applicable to foreign investors that are not domiciled in the U.S. Sometimes, with proper planning, foreign investors can avoid U.S. estate and gift taxes. This article discusses the special provisions of the U.S.- Germany estate and gift tax treaty foreign investors should consider when planning to avoid or mitigate U.S. estate and gift taxes.An Overview of the Estate and Gift TaxU.S. Federal law imposes a transfer tax upon the privilege of transferring…

16Nov 2023 by Anthony Diosdi

A Closer Look at the U.S.-France Estate and Gift Tax Treaty

Tax Treaty

By Anthony Diosdi Foreign investors generally have the same goal of minimizing their tax liabilities from their U.S. real estate and other U.S. investments, as do their U.S. counterparts, although their objective is complicated by the very fact that they are not domiciled in the U.S. The U.S. has a special estate and gift tax regime that is applicable to foreign investors that are not domiciled in the U.S. Sometimes, with proper planning, foreign investors can avoid U.S. estate and gift taxes. This article discusses the special provisions of the U.S.-France estate and gift tax treaty foreign investors should consider when planning to avoid or mitigate U.S. estate and gift taxes.An Overview of the Estate and Gift TaxU.S. Federal law imposes a transfer tax upon the privilege of transferring property…

25Oct 2023 by Anthony Diosdi

Questions Regards U.S. Federal Tax Consequences of India’s Provident Fund Schemes Under the U.S.-India Income Tax Treaty

Tax Treaty

By Anthony Diosdi India has a national pension plan that is similar to a social security system. The normal pension age for earnings-related pension benefits from the Employees’ Pension Scheme is 58 years of age with a minimum of ten years of contribution. The pension age for the earnings-related Employees Provident Fund scheme is 55 years of age. Covered individuals belong to the organized sectors and are employed by the government, government enterprises, public and private sector enterprises, which are mandatorily covered by the Employees Provident Fund Organization (“EPFO”). Employees with 20 or more employees are covered by EPFO. The remaining 88 percent of the workforce are mainly self-employed, daily wage workers, farmers, etc and are covered by the EPFO. For this share of the Indian workforce the Public Provident…

22Aug 2023 by Anthony Diosdi

What Hungarian High Tech Companies Need to Know Now that the U.S.-Hungarian Tax Treaty Will be Terminated

Tax Treaty

By Anthony Diosdi and Istvan Csovari On July 8, 2022, the Biden administration announced that it will terminate the United States-Hungary Income Tax Treaty that was enacted in 1979. The provisions of the tax treaty will no longer apply beginning on January 1, 2024. According to a July 8, 2022, article in the Wall Street Journal entitled “U.S. Moves to End Tax Treaty With Hungary”, the U.S. Department of the Treasury (the “Treasury”) explained that its action was based on long-standing concerns with Hungary’s tax system and the treaty itself, and a lack of satisfactory action by Hungary to remedy these concerns in coordination with other EU member countries that are seeking to implement the OECD Pillar Two global minimum tax proposal. The treaty’s termination will apply to U.S.-source dividends,…

22Aug 2023 by Anthony Diosdi

What is an RRSP and How is it Taxed Under the United States- Canada Income Tax Treaty

Tax Treaty

By Anthony DiosdiThe Canadian diaspora in the United States comprises approximately 3.1 million individuals who were either born in Canada or reported Canadian ancestry. Many of these individuals have Canadian registered retirement accounts or (“RRSPs”). An RRSP is a retirement savings and investing vehicle for employees and self-employed individuals in Canada. Under Canadian tax law, money that is placed into an RRSP grows tax-free until it is withdrawn from the account. An RRSP is similar to a U.S. 401(k) plan. There are a number of retirement plans available to Canadian residents to save for retirement. These plans provide tax deferral benefits and are intended to promote savings for retirements. Some common Canadian retirement plans are RRSPs, registered retirement income funds (“RRIFs”), tax-free savings accounts (“TFSAs”), registered education savings plans (“RDSPs”),…

05Aug 2023 by Anthony Diosdi

What is Superannuation and How it Could be Taxed Under the United States- Australia Income Tax Treaty

Tax Treaty

There are currently more than 100,000 Australian-born people living in the United States. Many of these individuals have an Australian Superannuation account. A superannuation is an Australian pension program created by a company to benefit its employees. Funds deposited in a superannuation account will grow through appreciation and contributions until retirement or withdrawal. As with many foreign pension plans, the U.S. federal taxation of superannuation accounts is a gray area. The most common type of superannuation is the Self-Managed Superannuation Funds. This article will focus on Self-Managed Superannuation Funds. This is because Self-Managed Superannuation Funds are the most common type of superannuation. Many tax professionals consider a superannuation fund to be a foreign grantor trust for U.S. tax purposes. If a superannuation fund can be classified as a grantor trust,…