Are there a lot of taxes in your country? In the U.S., companies have two main legal forms available to foreign nationals. The first is an LLC, a partnership. The company as an entity does not pay taxes. All profits are distributed among the members of the company. They remit the tax; for non-residents the rate reaches 37 percent. The second form is a Co-operative, an analogue of the Russian AO. The company pays federal tax: 21 percent on profits made in the U.S. or from U.S. sources. If the income has nothing to do with the United States, it is not taxed.
There are also regional taxes? We have a three-tiered tax system: city tax, state tax, federal tax. The rates vary everywhere.
Is it hard to figure out? No, it’s all built pretty logically. The most problematic part is determining the total amount of tax a company has to pay on different assets.
Does the company pay taxes on employees? Every U.S. resident declares and pays their own taxes.
How often do companies report? Annually by April 14. A U.S. certified public accountant is allowed to file the returns.
What if there is an error in the report? A mechanical error will be corrected by inspectors. When the problems are more global, the company resubmits the form where the mistake was made.
Are the penalties high? If a company doesn’t pay taxes and doesn’t submit a report, it will be fined 5% of the amount owed. With each month of delay, the penalty increases until it reaches 25 percent. If a company fails to pay, but reports, the penalty is much less – 0.3 percent.
Are companies using ways to reduce taxes? Yes, after all, the federal tax rate is quite impressive. For example, they divide the turnover into the turnover generated in the U.S. and the turnover generated outside of the U.S..
Do you have a unified tax code? At the federal level there is the Internal Revenue Code, plus each state has its own law.
Do the laws change often? Yes, with every election (smiles).