United States Tax Return Specialists
We at NZ US Tax Specialists combine our multi-disciplinary approach with deep, practical knowledge of US tax legislation to help clients meet challenges, respond to opportunities, remain compliant, and protect their interests when doing business with entities in the USA..
Creation of a permanent establishment
Sending an employee to the United States can also have more widespread implications for the tax status of the organization on whose behalf the employee is sent. The gravity of the employee to the United States operations can result in the formation of a permanent establishment in the United States under the US-NZ Tax Treaty. This is one of several ways in which a permanent establishment can be created.
A lack of tax planning can result in an unnecessary and avoidable tax burden being imposed on an entity that engages in transactions with United States entities. This occurs more often than it should, due to the lack of preferential tax treatment available to foreign corporations which engage in business with the United States.
NZ US Tax Specialists can assist with the requisite planning in order to avoid this. Planning should include determination of the most tax-efficient operating structure, and planning for future tax liabilities created by doing business in the United States. This is especially important where personal services are performed through a corporate entity, and employees are sent on assignment.