The right structure is vital to ensuring U.S. companies pay the right amount of tax on their worldwide profits, argues Bruce Militzok, partner at Farkhouh, Furman & Faccio in New York
The U.S. has a system of worldwide taxation
The U.S. has a system of worldwide taxation which applies to companies and individuals. Bruce Militzok, partner at FF&F, accountants in New York, explains the fundamentals of the United States' tax system as follows: "If the company is incorporated or resident in the U.S., it is taxed on its worldwide income, no matter where it has been earned. This is in contrast to some countries. The business could also be subject to tax in the local jurisdiction."
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