Non-dom USA C-Corp - expenses

[tomboy]

Hi,

Can a non-Dom USA C-Corp have expenses abroad?

Basically, I am not American. I have a USA C-Corp and live in Dubai. I'd like to pass some expenses on my business in the US but I'll be purchasing the equipment here in UAE. Right now I need a computer and a phone. Is this fine with the IRS?

also, the invoices will be in Arabic - can it be accepted as it is or do I need to provide a translation in case the company will be audited ?

thx

 

[exprtadvisrdev]

Talk to a local accountant in the US who understands offshore expenses, he will be able to let you know if it's OK or not

Last edited: Dec 20, 2020

 

[tomboy]

I will do it, just wanted to know if someone had experience with it as offshore US company seems to be quite common

 

[exprtadvisrdev]

You have a C-corp, that's not commonly used by foreigners since you need to pay taxes in the US, that's why it's better to ask an accountant. I have an LLC but they are taxed differently

 

[Sols]

Why would you structure it like this? A C-Corp is almost never used by non-resident foreigners unless you're raising VC funding. As @eadeveloper says, you're going to have to pay full US corporate tax. There are creative ways to lower this but it's fairly advanced tax planning and you definitely want to work with an accountant on this. The way you have set this up, you need to ensure compliance with US and UAE tax code, including regulations on what can be a company expense.

LLC is what most non-resident foreigners use, since they are normally tax transparent and income isn't taxable in the US in many cases.

You already live in a tax haven. Why not just form a local company?

That said, in principle, there's nothing wrong with buying work equipment through the US company and the invoices can be in any language you want. At the end of the day, it's up to you to prove they are legitimate if the IRS decides to audit you. Having invoices in languages other than English puts the burden on you to prepare a sworn translation that the IRS trusts.

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This is the probably the answer to your question.

 

[Fulton Abraham Sanchez]

Sorry but it will not fly.