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Information about new tax reporting requirements for US expatriates working under "company" status?
Auteur du fil: Natalia Eklund
Natalia Eklund
Natalia Eklund  Identity Verified
France
Local time: 18:45
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Oct 25, 2018

Has anyone looked into how the new US tax law voted in January 2018 will affect our work abroad?

Any US person owning at least 10% of a foreign company now has to declare that company's earnings to the IRS. The IRS defines a company as any structure that limits your responsibility in any way.
In my case, I work in France under EURL status which means I own 100% of a foreign company. On top of everything, my accountant set it up with a financial year from July-June, which is ... See more
Has anyone looked into how the new US tax law voted in January 2018 will affect our work abroad?

Any US person owning at least 10% of a foreign company now has to declare that company's earnings to the IRS. The IRS defines a company as any structure that limits your responsibility in any way.
In my case, I work in France under EURL status which means I own 100% of a foreign company. On top of everything, my accountant set it up with a financial year from July-June, which is getting really complicated because how can I declare earnings if the year hasn't closed out yet? I only have French clients and I live in France.

I found a couple online sources talking about the form we have to fill out (Form 5471), saying it is the most complicated the IRS ever invented. (ex. https://www.greenbacktaxservices.com/blog/us-income-tax-reporting-requirements-foreign-businesses/)

Does anyone have any information to share? When making this law, the US had companies like Google and Apple in mind, but how are we small guys to handle this kind of thing without blowing our budgets in tax assistance fees?

Are we going to have to close down our companies and get an umbrella company/portage salarial to fake pay us as salaried employees? ▲ Collapse
 
Jean Lachaud
Jean Lachaud  Identity Verified
États-Unis
Local time: 12:45
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Limited responsibilities? Oct 25, 2018

Does the EURL limit your responsibilities the same way, say, a US "C" incorporation would, for example???
 
Natalia Eklund
Natalia Eklund  Identity Verified
France
Local time: 18:45
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AUTEUR DU FIL
Yes Oct 25, 2018

They're very similar. Though if you're looking for a specific correlation, the EURL is perhaps more like an S corporation and an SARL is like a C corporation.

Also, I misspoke in my earlier post. In my situation I am a SARL Unipersonnel which is often confused with EURL (even by me) since they both only have one owner.
The difference is that the EURL is subject to IR (income tax) and in SARL you can choose to be subject to IS (corporate tax).

If anyone else is cu... See more
They're very similar. Though if you're looking for a specific correlation, the EURL is perhaps more like an S corporation and an SARL is like a C corporation.

Also, I misspoke in my earlier post. In my situation I am a SARL Unipersonnel which is often confused with EURL (even by me) since they both only have one owner.
The difference is that the EURL is subject to IR (income tax) and in SARL you can choose to be subject to IS (corporate tax).

If anyone else is curious, C corporation : https://en.wikipedia.org/wiki/C_corporation

EURL & SARL Unipersonnel : https://fr.wikipedia.org/wiki/Entreprise_unipersonnelle_à_responsabilité_limitée ▲ Collapse
 


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Information about new tax reporting requirements for US expatriates working under "company" status?







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