7

The EU has established rules about member governments subsidising industries. The intention is to ensure that trade in the EU is not distorted by government incentives, so that factories get built in the most efficient location rather than where a government offers the biggest subsidy. This is the mirror image of the rules which prohibit tariffs; governments ...


7

Neither of those clauses has anything to do with whether a tax on the use of Whatsapp is legal: The first clause tells users that they are responsible for any taxes that may be owed. It says nothing about whether such a tax is or is not legal. The second clause says that users may not charge for Whatsapp services. It says nothing about whether the ...


5

You don’t need a company to run a business As an individual (sole-trader) you can operate a business, hire employees and contractors and do everything else a business does. The purpose of a company is to separate and protect your personal assets from your business assets. As a sole-trader you are personally responsible for all the liabilities of the ...


4

A substantial part of the value of the goods and services provided by tech companies is in intangibles. For example, this analysis suggests that approximately 1/3 of the price of an iPhone is in materials and labour and the rest is in the patents, copyrights and brand value that the names "Apple" and "iPhone" provide. If these intangibles are owned by, say,...


3

The legal requirement to hand over the returns is found in 26 U.S. Code § 6103: (f) Disclosure to Committees of Congress (1) Committee on Ways and Means, Committee on Finance, and Joint Committee on Taxation Upon written request from the chairman of the Committee on Ways and Means of the House of Representatives, the chairman of the Committee on ...


3

It is more complicated. From Wikipedia “The United States has income tax treaties with over 65 countries. These treaties reduce the chance of double taxation by allowing each country to fully tax its citizens and residents and reducing the amount the other country can tax them. Generally the treaties provide for reduced rates of tax on investment income ...


2

You and the company are separate entities. Let’s say your company has a printer. If that printer as a used printer is worth $500 then the company can’t give it to you for free or sell it for less than the value, or it will be tax evasion. The company’s profits are lower than they should be, and your wallet contains more money than it should. The only legal ...


2

I believe it would be useful to clarify some things first: There is no concept of "alien entities" in tax law (and by "tax" I mean specifically US federal income tax - as opposed, for example, to US federal estate tax or state and local tax law). For individuals, there are two tax categories: citizen or alien. Alien individuals are subdivided into resident ...


2

There are lots of reasons to register a company, but the law on corporation tax isn't one of them; as DaleM says in his answer you can just be a sole trader. However: As DaleM also says, having a company keeps personal and business assets separate. You really need to have that firewall. That way if something bad happens, like a lawsuit when your product ...


1

Based on the Providing services abroad within the EU text, this would depend on if the place of establishment in Country B has been registered there. The main criteria being: how often, for how long and how regularly If I have understood your scenario correctly, both Country A and B have been registered (Country B being tax resident) Country B ...


1

A couple of 1000 € should leave you fine wrt. social insurance: that would be covered by the university job. Not much further burocracy here than notifying your health insurance. It will also leave you far below the Kleinunternehmer threshold, meaning you'll want to sign up for VAT exemption (IIRC, in the Fragebogen zur steuerlichen Erfassung). You can ask ...


1

X owes the tax When X realised the gain, the triggered the tax liability. Even if they transferred the asset to the company in return for equity without going through cash first, that would trigger the liability. HMG does not care what you do with your gain, invest it, spend it, blow it at the track, so long as you pay the tax.


1

There's nothing strange about the language. The fair market value of vested shares of restricted stock is included in the employee's income as compensation. This is what is known as compensation "in kind" and it results in what is also known as "phantom income" - the employee (or, on occasion, contractor) has to pay tax in cash even though it received no ...


1

RSUs are taxable when they vest, so there is indeed tax due and it's reasonable for your employer to collect estimated income taxes. See https://www.schwab.com/public/eac/resources/articles/rsu_facts.html It's a bit unusual for a private company to grant RSUs and let them vest before there is a way to turn the stock into cash. Typically private companies ...


1

The rule is that the Section 83(b) election must be filed within 30 days after the date the property (stock, in this case) is "transferred". Several terms are somewhat tricky here: "Filed" means postmarked. If the 30th day following the transfer of property falls on a Saturday, Sunday or legal holiday, the election will be considered timely filed if it ...


1

One of the gotchas with non-managers or minority members of LLCs is that the LLC can post a profit without making any distributions to members, leaving you bereft of the cash needed to pay the tax. You could be in a weird situation where the LLC posts a profit in 2019 and 2020 so you had to send a check to the IRS, then do a distribution in 2021 so 35% is ...


1

Is this company required to file taxes for the previous year, and if they don't, will they face any punishment? Yes. Every corporation is required to file an IRS Form 1120 every year (the same rule does not apply to trusts or limited liability companies), even if it has no revenue or expenses. See 26 USC § 6012(a)(2) and Treas. Reg. § 1.6012-2 ("Except as ...


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