Currency: US Dollar
Foreign Exchange Control: No general restrictions however sanctions and embargoes apply to certain countries and entities.
Accounting Principles: US GAAP
Business Entities: Principally, corporation, limited liability company, business trust, partnership and limited partnership.
Corporate Taxation: Residence: If created or organised in the USA or under the laws of the USA.
Basis: Resident companies subject to tax on worldwide income; non-resident companies are taxed on income connected with trade or business in the USA.
Rate: Progressive rate from 15% – 35%
Foreign Tax: Foreign income taxes can be offset dollar for dollar on foreign income if certain conditions are satisfied.
Other: Deductions available for R&D and various other activities.
Tax Year: Accounting year. Must end on the last day of any month.
Residence: Resident individual subject to tax on worldwide income with credits for foreign tax; non-resident individual only taxed on USA-source income and USA connected income (Resident if >183 days in a tax year. Can also be resident if spend cumulative time in the USA over a number of years).
Rate: Progressive up to 39.6%
Capital Gains: Minimum rate of 20% on net of long term gains against short term losses. Dividends also included.
Other: Stamp duty: May be imposed by states.
Real property tax: Imposed by local governments at various rates
Inheritance tax: Up to 40%
Social Security: 12.4% split between employer and employee. Additional Medicare contribution of 2.9%-3.8%
VAT: Levied by individual states at varying rates
Member Firms: Downey & Company LLP and Gerber & Co Inc