International | Michigan International Tax Accountant

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Expatriate Employees and Global Taxation

Posted by Eric Lin on September 9, 2020

Eric Lin

As Chinese companies expand their businesses globally, expatriate employees’ individual income taxes become more critical for the employees themselves, and Chinese-owned foreign subsidiaries. Here are some important considerations under the Chinese IIT Rules.

Relief with International Tax Deductions

Posted by Sue Tuson on August 19, 2020

The Tax Cuts and Jobs Act (TCJA) of 2017 provided a benefit for corporations that export goods or services by creating a foreign-derived intangible income deduction (FDII), also referred to as a section 250 deduction.

9 FAQs About the USMCA

Posted by Carlos Calderon on August 3, 2020

It has already been a month since one of the most competitive regions in the world, which together generated more than 25% of the world’s GDP in 2019, finally entered into the United States-Mexico-Canada Agreement (USMCA).

IRS Revises Cross-Border Activity During COVID-19

Posted by Teresa Gordon on May 5, 2020

The IRS has been busy, and this time, that is a good thing. Within the past couple weeks, they have released two Revenue Procedures (Rev. Proc.) and one frequently asked questions (FAQ) that explains how treatment of cross-border activities will change in light of the COVID-19 disruptions.

CARES Act Special Rules for Use of Retirement Funds

Posted by Julie Killian on March 30, 2020

The CARES Act includes a number of provisions to allow access to retirement funds in employer-sponsored retirement plans.

International Investment Filing Date: BE-10

Posted by Sue Tuson on March 27, 2020

Every five years, the U.S. Department of Commerce Bureau of Economic Analysis (BEA) requires that people with certain investments abroad file a survey. The mandatory survey is based on investments held at the end of the 2019 fiscal year.

To “C” or not to “C”? That is the Question

Posted by Jim Biehl on March 17, 2020

Whether it is nobler in the mind to suffer the higher effective tax rates as a flow-through entity, while maintaining optimum future planning flexibility, or elect to convert your flow-through entity to be taxed as a C corporation, and by doing so realize the immediate and delicious 21% “permanent” C corporation tax rate?

Why Choose Michigan for Your Foreign Subsidiary?

Posted by Sue Tuson on March 10, 2020

When making the strategic decision to expand a business into the U.S. it’s important to carefully plan for the various challenges inherent in the process. Strategic issues such as supply chain development, vendor management, and production optimization.

Important Filing Requirement for Foreign-Owned U.S. Companies

Posted by Nina Wang on February 19, 2020

The last thing any business wants to receive is an audit notice from the Internal Revenue Service (IRS). Your first reaction will naturally be panic or fear. So, what protective measures can a business or business owner put in place?

Early Progress on the International Front

Posted by Robert Dutkiewicz on February 4, 2020

The new decade got off with a big bang, with significant developments in trade policy. Though their substance and effect seem to be a point of debate, I believe that all three of these recent developments will be positive for the U.S. economy, in some way.

US Senate Approves the USMCA

Posted by Carlos Calderon on January 20, 2020

The United States, Mexico, Canada trade deal (aka. NAFTA 2.0), has finally been approved by the US Senate after 29 months of extensive negotiations. Republicans and Democrats came together to show support with 89 votes in favor of the new agreement.

Global Expansion: Investing in a Subsidiary

Posted by Sue Tuson on January 17, 2020

Businesses are consistently evaluating how to stay competitive. Global expansion may be the answer for a business to reach new markets, meet current customer needs, reduce costs, or find talent.

5 Considerations for Finding the Right CPA

Posted by Denise Asker on January 3, 2020

Whether you are handling business or personal finances, having a Certified Public Accountant (CPA) as your advocate is priceless. The right CPA can help you and your business move toward financial success and uncover areas of financial improvement.

Leadership From Around the Globe

Posted by Robert Dutkiewicz on December 2, 2019

A few weeks ago I traveled to Rome, along with my fellow shareholder Sue Tuson, to attend the PrimeGlobal World Conference. PrimeGlobal is one of the five largest associations of independent accounting firms in the world.

Considerations When Expanding Outside the U.S.

Posted by Sue Tuson on November 12, 2019

Establishing a subsidiary outside the U.S. presents tremendous opportunities and benefits. Succeeding in global markets requires significant time, energy and resources on the part of business owners and decision-makers.

Doing Business in the US: Challenges and Experiences of European Companies

Posted by Teresa Gordon on October 31, 2019

European companies open branches in the United States for a host of reasons. For starters, the US gives these businesses a completely new base of customers; a chance to step out from the almost saturated European market and stand out from the crowd.

Considering Expanding to Mexico? Keep an Eye on Duties and Taxes!

Posted by Carlos Calderon on September 23, 2019

Taxes are a hot topic that should be discussed and planned early in an expansion decision due to the significant impacts on a business. In fact, the ideal time to consider taxes is the moment a cash flow projection is created and when the business structure and plan are outlined

US Tax Treaty Updates Japan and Spain

Posted by Sue Tuson on September 9, 2019

Long-awaited treaty protocols, signed in 2013, were finally ratified in July 2019. The protocol with Japan entered into force on August 30, 2019, provides amendments to the 2003 tax treaty. The protocol with Spain is due to enter into force on November 27, 2019, and provides for the amendments to the 1990 treaty.

US Reporting of Foreign Subsidiaries

Posted by Sue Tuson and Teresa Gordon on August 28, 2019

The IRS continues to increase scrutiny of the reporting requirements applicable to foreign persons and U.S. companies with foreign transactions. It is important to fully understand these U.S. obligations because failure to report...

Thinking of Expanding your Business Overseas?

Posted by Sue Tuson on July 18, 2019

Thinking of expanding your business overseas? The first question is usually, “What’s the best way to start? Should I set up an office immediately or use an independent contractor familiar with the country?”

The New Foreign Investment Law

Posted by Nina Wang on July 16, 2019

In response to international criticism about China’s openness to foreign businesses and an attempt to attract more foreign investors to expand their businesses to China, the National People’s Congress passed the Foreign Investment Law of the People’s Republic of China (Foreign Investment Law) on March 15 2019, which will come into force on January 1, 2020.

Benefit for Exports: Foreign Derived Intangible Income Deduction

Posted by Sue Tuson on July 2, 2019

The 2017 Tax Cuts and Jobs Act (TCJA) has made C-Corporation status much more attractive to business owners, and the 21% flat tax rate has caused many to consider whether converting to a C-Corporation may be worth the switch.

5 Considerations for Choosing an International CPA

Posted by Teresa Gordon on July 2, 2019

International businesses expanding into the US, whether a manufacturer, distribution company or professional service firm, face similar challenges. Operational issues such as supply chain, vendor management and process or production optimization require close attention, as do human resources, sales and marketing.

International Business Tips

Posted by Tim Hilligoss on May 7, 2019

More and more companies today are venturing into the waters of international business. While the potential rewards of global trade are great, so are the potential risks.One of the biggest risks lies in not understanding the distinct cultural subtleties and nuances that exist from one country to the next.

When Does it Make Sense to Expand to Mexico?

Posted by Carlos Calderon on March 19, 2019

When looking at the competition – especially in the automotive industry –the question on whether it makes sense to expand to Mexico will ultimately arise. Our clients ask this often enough for us to note the key considerations required before determining if this opportunity is right for your business.

How to Respond to the US-China Trade Friction

Posted by Nina Wang and Tim Hilligoss on January 29, 2019

The year of 2018 was essential to the world’s two greatest trading nations: the United States and China. Throughout 2018, the Trump administration proposed and launched a series of policies imposing additional duty rates on a wide range of products imported from China. China retaliated immediately by publishing a list of products imported from US as targets for an additional 25% tariff. This trade friction is sweeping worldwide and has significant impacts on businesses.

Impacts of the New China IIT Law

Posted by Nina Wang on January 28, 2019

On August 31, 2018, China passed the Draft Amendment to the Individual Income Tax Law (IIT Law), which is the most significant revamp in the past 38 years. The amendments will have a significant impact on foreigners living in China. The following is an overview of the key changes that may affect individuals in the global mobility arena.

China Released Tax-Reduction Measures

Posted by Nina Wang on January 10, 2019

In the past few months, China’s Ministry of Finance (MOF), State Administration of Taxation (SAT), and other governmental agencies released various new “Circulars” to the current Chinese corporate tax law. Most of these tax reduction measures took effect January 1, 2018 in order to support entrepreneurship, innovation, and the development of both high technology enterprises and small and mid-sized entities (SMEs).

Mexico’s Proposed New Tax Reform

Posted by Carlos Calderon on December 5, 2018

As of December 1, 2018, Mexico will have officially elected President Andres Manuel Lopez Obrador. His campaign was focused on topics such as security, education and culture, fight against corruption, compliance with the law, and correct execution of economic resources, to name the most relevant.

Mexico’s Payment Receipt Complement: Are You Ready for it?

Posted by Tim Finerty and Carlos Calderon on October 19, 2018

It is essential that the information received by the taxpayers be precise to avoid penalties.

NAFTA 2.0? New USMCA Trade Agreement Makes Subtle Changes to NAFTA—but Not a Done Deal

Posted by Clayton & McKervey and Carlos Calderon on October 8, 2018

Since NAFTA passage was a difficult legislative feat in 1994, domestic political considerations may again ultimately drive whether the rebranded USMCA is implemented in North America.

China’s Reduced VAT (Value Added Tax) Rates

Posted by Nina Wang on August 28, 2018

Value Added Tax rates in China have been lowered, which is expected to save businesses 240 billion yuan a year.

How Tariffs Will Impact Your Mexican Operation?

Posted by Carlos Calderon on July 26, 2018

On May 31, the US Department of Commerce announced that tariffs on steel and aluminum were no longer valid for Mexico, Canada and the European Union. Hence, these countries became subject to a 25% and 10% tax on tariffs for these materials effective June 1.

Foreign Direct Investment Thrives in the US

Posted by Teresa Gordon on July 16, 2018

The 2018 SelectUSA Investment Summit highlights the focus of our Foreign Direct Investment (FDI) practice well, and I want to share a re-cap of the interest and activity at a national level.

What You Need to know about North American Free Trade Agreement (NAFTA)

Posted by Carlos Calderon on June 21, 2018

Drafted in 1992, the NAFTA document was designed to define the rules of commerce between Mexico, Canada and the United States.

Our China Practice

Posted by Robert Dutkiewicz on June 11, 2018

I am pleased to share the accomplishments from our China service team, from how they serve our clients to providing up-to-date information on the accounting, tax, and business needs of the China market.

Mandatory Government Survey—Survey of US Persons Service and IP Transactions with Foreign Persons

Posted by Sue Tuson on May 15, 2018

The US Department of Commerce Bureau of Economic Analysis (BEA) has issued a mandatory survey of select services and intellectual property transactions with foreign persons.

Considering Doing Business in Mexico? Six Things to Know Before You Go

Posted by Tim Finerty and Carlos Calderon on March 13, 2018

There are six key issues to consider before a business expands to Mexico. It is strongly recommended to consult a tax and accounting advisor before doing business in Mexico to avoid penalties, fees and fines.

Permanent Establishment in China

Posted by Tim Hilligoss and Nina Wang on March 13, 2018

In many cases, the owners of such foreign entities are not aware of PE concepts and as a result, the entities are subject to Chinese CIT liability.

Carlos Calderon rejoins Clayton & McKervey as Manager of Mexico Consulting Practice

Posted by Clayton & McKervey on January 15, 2018

Clayton & McKervey, an international certified public accounting and business advisory firm located in metro Detroit, announced that Carlos Calderon has rejoined the firm as …

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