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Do an international business investor have to pay tax for removing money from his own business in the states?


I went to the irs web site wouldnt find anything about remove money from the business to outside country

I've been an international tax lawyer for 30 years, and the best advice I can give you is to seek out a qualified professional advisor. Here are a few guidelines:

* If you are a US citizen or resident alien, you must pay tax on all your income worldwide. (Resident alien status is determined under tax rules and your immigration or visa status is only one factor.)

* If you are a nonresident alien for tax purposes, you still must pay tax on the income from your US business. An advisor can help you determine how much income is attributable to that business, and possibly give you some ideas for reducing your US taxable income.

* If you carry on your US business through a US corporation, the corporation is taxable on its income, and you are taxable on dividends, interest, royalties, and other amounts received from the corporation that are from sources within the US.

* If you carry on a US business through a foreign corporation, then the corporation is the taxpayer. The corporation will be subject to tax on the income of the business, and may also have to pay "branch profits tax" when funds are remitted outside the US. Alternatively, you may be taxed on dividends you receive from the corporation out of US profits. This is not a choice you make, but it depends upon the law applicable to you (including any relevant income tax treaty).

There are more relevant rules, which your advisor can tell you about.

Respectfully, call them. All things aren't always printed on websites, sometimes due to space and sometimes due to privacy issues.

When $$$ are paid over to an investor as dividends or for other reasons due to ownership, there are withholding requirements for non-resident aliens (but there are exemptions depending on who and where the person is from).

See Publication 901 US Tax Treaties at the IRS website.

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