Amy's International tax

The US branch in  Singapore can take a credit in the US for the Bangladesh taxes paid – but those taxes are in the “branch basket” where there is a valuation allowance now that limits the ability to get a credit for the full amount of the credit today.   There are some changes in the new US tax rules that may make it more possible to claim more of those credits – but there hasn’t been time yet to fully analyze the impact of this.  So – if a question comes up in the future about the ability to claim branch credits – let’s recheck to see what the latest is.

Free Trade Zones and Bonded Warehouses: A Gateway to Tax-Efficient Global Trade In the intricate world of international commerce, Free Trade Zones (FTZs) and Bonded Warehouses (BWs) serve as crucial tools for businesses seeking to optimize their supply chains and mitigate tax burdens. While both offer significant advantages related to customs and duties, they operate under distinct principles and provide different strategic benefits. Free Trade Zone (FTZ) : A Free Trade Zone is a designated physical area within a country that is considered to be outside its customs territory for the purposes of duties and taxes. Goods can be imported into an FTZ without being subject to the usual customs procedures and tariffs. Within the zone, merchandise can be stored, manufactured, assembled, processed, and repackaged. It is only when the goods are moved from the FTZ into the domestic market of the host country that they become subject to import duties and taxes. If the goods are re-exported to ano...

Dropshipment  Delivery term with the supplier FCA Shanghai FTZ (Free Trade Zone) Delivery term with the customer  Goods from outside China, CIF Shanghai Seaport Company A is responsible for arranging and paying for the transportation of goods from the Shanghai Free Trade Zone (FTZ) to the Shanghai Seaport. To do this, Company A would hire a local freight forwarder or a third-party logistics (3PL) provider in Shanghai. The Transportation Process 🚚 Based on the Incoterms provided, here is the breakdown of responsibilities and the likely process for Company A:  * Contract a Freight Forwarder: Company A's primary step is to engage a freight forwarder based in or with strong operations in Shanghai. This forwarder will act as Company A's agent to manage the local logistics.  * Coordinate Pickup: Under the FCA Shanghai FTZ term, the supplier completes its obligation once the goods are delivered to the carrier nominated by Company A at the agreed-upo...